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Origins and Consequences of State-Level Variation in Shale Regulation: The Cases of Pennsylvania and New York

In: Economics of Unconventional Shale Gas Development

Author

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  • Ilia Murtazashvili

    (University of Pittsburgh)

Abstract

The combination of hydraulic fracturing and horizontal drilling unlocked the economic potential of shale gas in the United States. However, the regulatory response to shale gas has varied substantially. This chapter considers the political economy of Marcellus Shale, focusing on differences in regulatory responses in Pennsylvania and New York. It suggests that the regulatory response in Pennsylvania is “efficient” and that different responses can be explained by features of politics, rather than geography, relative prices, or institutions. The chapter concludes by considering the benefits and costs of federal regulation of fracking. Although states have varied substantially in their response to fracking, decentralized governance of shale gas has many benefits and few discernible costs.

Suggested Citation

  • Ilia Murtazashvili, 2015. "Origins and Consequences of State-Level Variation in Shale Regulation: The Cases of Pennsylvania and New York," Natural Resource Management and Policy, in: William E. Hefley & Yongsheng Wang (ed.), Economics of Unconventional Shale Gas Development, edition 127, pages 179-201, Springer.
  • Handle: RePEc:spr:nrmchp:978-3-319-11499-6_8
    DOI: 10.1007/978-3-319-11499-6_8
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    Cited by:

    1. Joseph Nyangon & John Byrne, 2023. "Estimating the impacts of natural gas power generation growth on solar electricity development: PJM's evolving resource mix and ramping capability," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 12(1), January.

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