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Local income related to Marcellus shale activity in Pennsylvania

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  • Kirsten Hardy
  • Timothy W. Kelsey

Abstract

This study examines the impact of Marcellus shale development on Pennsylvania (USA) residents' income, as reported on state tax returns between 2007 and 2010, and pays special attention to the distribution of these economic impacts across residents within Pennsylvania counties. The analysis shows that Marcellus development has had a positive effect on taxable income of local residents and that the increases in lease and royalty income going to mineral right owners exceed local employment and compensation impacts in high drilling activity counties. This suggests that focusing on employment effects from such activity, as has been done in much recent economic research, misses an important potential impact on resident income. In addition, because land ownership is highly concentrated, it means local economic benefits of unconventional drilling are heavily concentrated among a small percentage of the population, potentially raising equity issues about the distribution of costs and benefits from such activity.

Suggested Citation

  • Kirsten Hardy & Timothy W. Kelsey, 2015. "Local income related to Marcellus shale activity in Pennsylvania," Community Development, Taylor & Francis Journals, vol. 46(4), pages 329-340, October.
    • Handle: RePEc:taf:comdev:v:46:y:2015:i:4:p:329-340
    DOI: 10.1080/15575330.2015.1059351
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    References listed on IDEAS

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    1. Jason Brown & John Pender & Jeremy G. Weber, 2013. "Rural wealth creation and emerging energy industries: lease and royalty payments to farm households and businesses," Research Working Paper RWP 13-07, Federal Reserve Bank of Kansas City.
    2. repec:fip:fedkrw:rwp2013-07 is not listed on IDEAS
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    Cited by:

    1. Brown, Jason P. & Fitzgerald, Timothy & Weber, Jeremy G., 2016. "Capturing rents from natural resource abundance: Private royalties from U.S. onshore oil & gas production," Resource and Energy Economics, Elsevier, vol. 46(C), pages 23-38.
    2. HOROBEȚ Alexandra & BULAI Vlad Cosmin, 2019. "Assessing the Local Developmental Impact of Hydrocarbon Exploitation in a Mature Region: A Random Forest Approach," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    3. Seung Jin Cho & Brent Kreider & John V. Winters, 2023. "Resource booms, state economic conditions, and child food security," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1734-1752, September.
    4. Brown, Jason P. & Coupal, Roger & Hitaj, Claudia & Kelsey, Timothy W. & Krannich, Richard S. & Xiarchos, Irene M., 2017. "New Dynamics in Fossil Fuel and Renewable Energy for Rural America," USDA Miscellaneous 260676, United States Department of Agriculture.
    5. Alison M. Bamber & Stephanie H. Hasanali & Anil S. Nair & Sharon M. Watkins & Daniel I. Vigil & Michael Van Dyke & Tami S. McMullin & Kristy Richardson, 2019. "A Systematic Review of the Epidemiologic Literature Assessing Health Outcomes in Populations Living near Oil and Natural Gas Operations: Study Quality and Future Recommendations," IJERPH, MDPI, vol. 16(12), pages 1-20, June.
    6. Fleming, David & Komarek, Timothy & Partridge, Mark & Measham, Thomas, 2015. "The Booming Socioeconomic Impacts of Shale: A Review of Findings and Methods in the Empirical Literature," MPRA Paper 68487, University Library of Munich, Germany.
    7. Joshua L. Warren & Jiachen Cai & Nicholaus P. Johnson & Nicole C. Deziel, 2022. "A discrete kernel stick‐breaking model for detecting spatial boundaries in hydraulic fracturing wastewater disposal well placement across Ohio," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 71(1), pages 175-193, January.
    8. Timothy M. Komarek, 2018. "Crime and natural resource booms: evidence from unconventional natural gas production," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 113-137, July.
    9. Jason Brown & Timothy Fitzgerald & Jeremy G. Weber, 2016. "Asset Ownership, Windfalls, and Income: Evidence from Oil and Gas Royalties," Research Working Paper RWP 16-12, Federal Reserve Bank of Kansas City.
    10. Hoy, Kyle A. & Xiarchos, Irene M. & Kelsey, Timothy W. & Brasier, Kathryn J. & Glenna, Leland L., 2018. "Marcellus Shale Gas Development and Farming," Agricultural and Resource Economics Review, Cambridge University Press, vol. 47(3), pages 634-664, December.
    11. Jessica A. Crowe, 2019. "The impact of shale development on crop farmers: how the size and location of farms matter," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(1), pages 17-33, March.
    12. Meng, Qingmin, 2018. "Fracking equity: A spatial justice analysis prototype," Land Use Policy, Elsevier, vol. 70(C), pages 10-15.
    13. Kuan‐Ming Huang & Xiaoli Etienne, 2021. "Impact of Marcellus and Utica shale exploitation on Ohio, Pennsylvania, and West Virginia Regional Economies: A synthetic control analysis," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1449-1479, December.

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