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Production of natural gas from shale in local economies: a resource blessing or curse?

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  • Brown, Jason

    () (Federal Reserve Bank of Kansas City)

Abstract

Innovations in the energy sector, particularly the extraction of natural gas from shale and tight gas formations using horizontal drilling and "fracking," have helped increase U.S. reserves of natural gas to an estimated 70 years' worth of supply. Some theories suggest such a boom leads to a local resource "blessing" in employment and a positive spillover into the local economy while others suggest a boom leads to a resource "curse" for industries not related to the energy sector. Brown examines county-level labor market conditions in the central United States and finds a modest positive effect in counties where natural gas production has increased, and little evidence of a natural resource curse.

Suggested Citation

  • Brown, Jason, 2014. "Production of natural gas from shale in local economies: a resource blessing or curse?," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 1-29.
  • Handle: RePEc:fip:fedker:00005
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    References listed on IDEAS

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    Keywords

    Natural gas; Gas industry;

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