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Impact of Marcellus and Utica shale exploitation on Ohio, Pennsylvania, and West Virginia Regional Economies: A synthetic control analysis

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  • Kuan‐Ming Huang
  • Xiaoli Etienne

Abstract

We use the synthetic control method to determine the economic impact of shale exploitation on Ohio, Pennsylvania, and West Virginia. Estimation results are mixed. The shale development decreased the poverty rate and increased the employment growth rate in Pennsylvania and West Virginia in the short run. Top oil and gas producing counties in West Virginia also experienced short‐term personal income growth due to fracking. However, most of the positive impacts disappeared a few years after the initial boom periods. The shale development did not bring significant economic benefits to Ohio. Further, shale drilling activities exert a potential long‐term negative effect on population growth in all three states. En este artículo se utilizó el método de control sintético para determinar el impacto económico de la explotación de shale (esquisto bituminoso) en Ohio, Pensilvania y Virginia Occidental. Los resultados de las estimaciones son dispares. El desarrollo del shale disminuyó la tasa de pobreza y aumentó la tasa de crecimiento del empleo en Pensilvania y Virginia Occidental a corto plazo. Los principales condados productores de petróleo y gas de Virginia Occidental también experimentaron un crecimiento de los ingresos personales a corto plazo debido al fracking. Sin embargo, la mayoría de los impactos positivos desaparecieron unos años después de los períodos de auge iniciales. El desarrollo del shale no aportó beneficios económicos significativos a Ohio. Además, las actividades de explotación del shale ejercen un efecto negativo potencial a largo plazo sobre el crecimiento de la población en los tres estados. 合成制御法を用いて、オハイオ州、ペンシルバニア州、ウェストバージニア州に対する頁岩採掘の経済的影響を調べた。推計の結果は一貫していない。頁岩採掘は、短期的にはペンシルベニア州とウェストバージニア州の貧困率を低下させ、雇用増加率を増加させた。ウェストバージニア州の石油・ガス生産量が上位の郡でも、フラッキング(水圧破砕法)によって短期的に個人所得が増加した。しかし、好影響のほとんどは最初の好況期の数年後に消滅した。オハイオ州では頁岩採掘による大きな経済的利益は得られなかった。また、頁岩採掘活動は、3つの州すべてにおいて人口増加に長期的にはマイナスの影響を及ぼす可能性がある。

Suggested Citation

  • Kuan‐Ming Huang & Xiaoli Etienne, 2021. "Impact of Marcellus and Utica shale exploitation on Ohio, Pennsylvania, and West Virginia Regional Economies: A synthetic control analysis," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1449-1479, December.
    • Handle: RePEc:bla:presci:v:100:y:2021:i:6:p:1449-1479
    DOI: 10.1111/pirs.12628
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