THE ECONOMIC IMPACT OF SHALE GAS DEVELOPMENT ON STATE AND LOCAL ECONOMIES: BENEFITS, COSTS, AND UNCERTAINTIES

It is often assumed that natural gas exploration and development in the Marcellus Shale will bring great economic prosperity to state and local economies. Policymakers need accurate economic information on which to base decisions regarding permitting and regulation of shale gas extraction. This paper provides a summary review of research findings on the economic impacts of extractive industries, with an emphasis on peer-reviewed studies. The conclusions from the studies are varied and imply that further research, on a case-by-case basis, is necessary before definitive conclusions can be made regarding both short- and long-term implications for state and local economies.