Hydraulic Fracturing and Economic Outcomes: A Study of Marcellus Shale Counties in Pennsylvania and New York

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heritage.org

Alexander Frei, Diana Furchtgott-Roth
Large parts of northern Pennsylvania and southwestern New York lie above the Marcellus Shale, a vast subterranean expanse of rock estimated to contain up to 500 trillion cubic feet of natural gas.REF Pennsylvania has allowed companies to extract natural gas with the technique known as hydraulic fracturing—also called hydrofracturing and fracking.REF This method is combined with drilling in which the drill extends horizontally through the rock formation to expand the areas of access and allow more of it to be tapped.

Pennsylvania counties above the Marcellus Shale are bustling with this “unconventional drilling,” while neighboring New York declared a moratorium on hydraulic fracturing and horizontal drilling techniques in 2010.REF New York debated the use of these techniques until 2014, when Governor Andrew Cuomo’s (D) administration announced that it would ban hydraulic fracturing in New York State completely.REF

This scenario presents a natural experiment ideally suited for applying a difference-in-differences (DID) regression analysis to assess the effect of the hydraulic fracturing ban. This Special Report focuses on the Twin Tiers, a total of 14 counties rich in natural gas that lie on the border of southwestern New York and northern Pennsylvania. By focusing on the Twin Tiers one can compare the same natural gas resources in the two states. New York’s 2010 hydraulic fracturing ban is the onset of the treatment, with the seven New York counties designated as the treatment group. In contrast, the seven Pennsylvania counties, unaffected by the ban, serve as the control group.

The geographical proximity and economic similarities between these two sets of counties provide a robust basis for estimating the income and job losses in New York attributable to the ban. The authors’ findings indicate that approximately $11,000 per capita—$27,000 per family—could have been created in New York in the absence of the ban.

Background

The shale revolution started in the late 1990sREF when energy companies employed a new method of extracting oil and natural gas that is trapped within the tiny pore spaces of shale rock.  » Read More
https://www.heritage.org/energy/report/hydraulic-fracturing-and-economic-outcomes-study-marcellus-shale-counties

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Special Cases

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Notice of Compliance to California Residents: Your California Privacy Rights Under the California Online Privacy Protection Act and the California Business and Professions Code

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Depending on the visitor’s activity, in our commercial web site or online service, the following “personally identifiable information” may be collected, in addition to information set forth in other sections of this document.

The term “personally identifiable information” means individually identifiable information about an individual consumer collected online by our company from an individual and maintained by our company in an accessible form, and may include any of the following:

  1. A first and last name.
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Context
Types of Data
Primary Purpose for Collection and Use of Data
Account Registration
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Client Information
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Demographic Information
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Mailing List
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Mobile Devices
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Order Placement
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We use your information to perform our contract to provide you with products or services.
Partner Promotion
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We use this information to fulfil our promotions.
Surveys
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We use this information to understand your opinions and collect information relevant to our organization.
Sweepstakes or Contests
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We use this information to operate the sweepstakes. In some contexts we are also required by law to collect information about those that enter into our sweepstakes.
Website Interactions
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Web Logs
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We use this information to monitor our networks and the visitors to our websites. Among other things, it helps us understand which of our products or services is the most popular.

Revisions to This Policy

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