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Project Citation: 

Bartik, Alexander W., Currie, Janet, Greenstone, Michael, and Knittel, Christopher R. Replication data for: The Local Economic and Welfare Consequences of Hydraulic Fracturing. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-05-30. https://doi.org/10.3886/E231454V1

Project Description

Summary:  View help for Summary Exploiting geological variation and timing in the initiation of hydraulic fracturing, we find that fracking leads to sharp increases in oil and gas recovery and improvements in a wide set of economic indicators. There is also evidence of deterioration in local amenities, which may include increases in crime, noise, and traffic and declines in health. Using a Rosen-Roback-style spatial equilibrium model to infer the net welfare impacts, we estimate that willingness-to-pay (WTP) for allowing fracking equals about $2,500 per household annually (4.9 percent of household income), although WTP is heterogeneous, ranging from more than $10,000 to roughly 0 across 10 shale regions.

Scope of Project

JEL Classification:  View help for JEL Classification
      D12 Consumer Economics: Empirical Analysis
      K42 Illegal Behavior and the Enforcement of Law
      L71 Mining, Extraction, and Refining: Hydrocarbon Fuels
      Q35 Hydrocarbon Resources
      Q51 Valuation of Environmental Effects
      Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
      R41 Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise


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