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The regional economic impact of oil and gas extraction in Texas

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  • Lee, Jim

Abstract

This paper empirically investigates the regional economic impact of oil and gas extraction in Texas during the recent shale oil boom. Regressions with county-level data over the period 2009–2014 support smaller multiplier effects on local employment and income than corresponding estimates drawn from popular input–output-based studies. Economic impacts were larger for extraction from gas wells than oil wells, while the drilling phase generated comparable impacts. Estimates of economic impacts are greater in a dynamic spatial panel model that allows for spillover effects across local economies as well as over time.

Suggested Citation

  • Lee, Jim, 2015. "The regional economic impact of oil and gas extraction in Texas," Energy Policy, Elsevier, vol. 87(C), pages 60-71.
    • Handle: RePEc:eee:enepol:v:87:y:2015:i:c:p:60-71
    DOI: 10.1016/j.enpol.2015.08.032
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    References listed on IDEAS

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    5. Carpenter, Craig Wesley & Anderson, David & Dudensing, Rebekka, 2019. "The Texas Drilling Boom and Local Human Capital Investment," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(2), pages 199-218, May.
    6. Guettabi, Mouhcine & James, Alexander, 2020. "Who benefits from an oil boom? Evidence from a unique Alaskan data set," Resource and Energy Economics, Elsevier, vol. 62(C).
    7. Cai, Zhengyu & Maguire, Karen & Winters, John V., 2019. "Who benefits from local oil and gas employment? Labor market composition in the oil and gas industry in Texas and the rest of the United States," Energy Economics, Elsevier, vol. 84(C).
    8. Wang, Haoying, 2018. "An Economic Impact Analysis of Oil and Natural Gas Development in the Permian Basin," MPRA Paper 89280, University Library of Munich, Germany.
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    11. Haoying Wang & Rafael Garduno Rivera, 2022. "The Growing US-Mexico Natural Gas Trade and Its Regional Economic Impacts in Mexico," Papers 2208.06928, arXiv.org.
    12. David Hudgins & Jim Lee, 2016. "Modeling the Expansion of Oil Production in South Texas and Mexico," The International Trade Journal, Taylor & Francis Journals, vol. 30(5), pages 387-414, October.
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    17. Cai, Zhengyu & Maguire, Karen & Winters, John V., 2018. "Who Benefits from Local Oil and Gas Employment? Labor Market Composition in the Oil and Gas Industry in Texas," GLO Discussion Paper Series 246, Global Labor Organization (GLO).
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    20. Adam Mayer, 2018. "Community economic identity and colliding treadmills in oil and gas governance," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 8(1), pages 1-12, March.
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    More about this item

    Keywords

    Oil and gas extraction; Dynamic spatial panel model; Multiplier effects; Regional economic impact;
    All these keywords.

    JEL classification:

    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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