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Why Fracking Won't Bring Back the Factories (Yet)

Author

Listed:
  • Bown, Chad
  • Denevers, Michele
  • Harrison, Ann

Abstract

Since last fall, President Obama has repeatedly declared that manufacturing jobs are coming back to America. In this article, however, we suggest that the return of U.S. manufacturing is still more promise than reality.In particular, while the recent increase in natural gas exploration and production has been optimistically linked to a U.S. manufacturing revival, the boom has not led to significant growth in employment. Paradoxically, for the U.S. to reap the greatest benefit possible from the extraction of its natural gas reserves, both more and fewer regulations are needed. On the one hand, current restrictions on natural gas exports must to be lifted to provide the right incentives for domestic producers, who receive much lower prices at home than they would abroad. On the other hand, more comprehensive environmental regulations would reassure critics that natural gas does indeed providea clean and sustainable promise for the U.S. economy.

Suggested Citation

  • Bown, Chad & Denevers, Michele & Harrison, Ann, 2013. "Why Fracking Won't Bring Back the Factories (Yet)," MPRA Paper 47872, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:47872
    as

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    File URL: https://mpra.ub.uni-muenchen.de/47872/1/MPRA_paper_47872.pdf
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    References listed on IDEAS

    as
    1. Justin R. Pierce & Peter K. Schott, 2016. "The Surprisingly Swift Decline of US Manufacturing Employment," American Economic Review, American Economic Association, vol. 106(7), pages 1632-1662, July.
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    More about this item

    Keywords

    environment; fracking; natural gas; climate change; methane;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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