FEEM working papers "Note di lavoro" series
2015 .017

The Economics of Shale Gas Development


Autori: Charles F. Mason, Lucija A. Muehlenbachs, Sheila M. Olmstead
Serie: Energy: Resources and Markets
Editor: Interim Series Editor: Matteo Manera
Parole chiave: Hydraulic Fracturing, Economic Benefits, Positive Externalities, Negative Externalities, Environmental Impacts
Numero JEL: Q4, Q42, Q5

Abstract

In the past decade, innovations in hydraulic fracturing and horizontal drilling have fueled a boom in the production of natural gas (as well as oil) from geological formations – primarily deep shales – in which hydrocarbon production was previously unprofitable.   Impacts on U.S. fossil fuel production and the U.S. economy more broadly have been transformative, even in the first decade.  The boom has been accompanied by concerns about negative externalities, including impacts to air, water, and quality of life in producing regions. We describe the economic benefits of the shale gas boom, including direct market impacts and positive externalities, providing back-of-the-envelope estimates of their magnitude.  The paper also summarizes the current science and economics literatures on negative externalities.  We conclude that the likely scope of economic benefits is extraordinarily large, and that continued research on the magnitude of negative externalities is necessary to inform risk-mitigating policies.

***
Suggested citation: Mason, C. F., L. A. Muehlenbachs, S. M. Olmstead, (2015), 'The Economics of Shale Gas Development', Nota di Lavoro 17.2015, Milan, Italy: Fondazione Eni Enrico Mattei.

Download file
Scarica il file PDF

FEEM Newsletter

Iscriviti per rimanere aggiornato.

I Suoi dati saranno trattati dalla Fondazione Eni Enrico Mattei. – Titolare del trattamento – per ricevere via posta elettronica la newsletter della Fondazione. Il conferimento dell’indirizzo e-mail è necessario alla fornitura del servizio. La invitiamo a consultare la Privacy Policy per ottenere maggiori informazioni a tutela dei Suoi diritti.

Questo Sito utilizza cookie tecnici e analytics, nonché consente l’invio di cookie di profilazione di terze parti.
Chiudendo questo banner o comunque proseguendo la navigazione sul Sito manifesti il tuo consenso all’uso dei cookie. Per ulteriori informazioni e per esprimere scelte selettive in ordine all’uso dei cookie vedi la   Cookie PolicyOk