IDEAS home Printed from https://ideas.repec.org/a/taf/comdev/v46y2015i4p329-340.html
   My bibliography  Save this article

Local income related to Marcellus shale activity in Pennsylvania

Author

Listed:
  • Kirsten Hardy
  • Timothy W. Kelsey

Abstract

This study examines the impact of Marcellus shale development on Pennsylvania (USA) residents' income, as reported on state tax returns between 2007 and 2010, and pays special attention to the distribution of these economic impacts across residents within Pennsylvania counties. The analysis shows that Marcellus development has had a positive effect on taxable income of local residents and that the increases in lease and royalty income going to mineral right owners exceed local employment and compensation impacts in high drilling activity counties. This suggests that focusing on employment effects from such activity, as has been done in much recent economic research, misses an important potential impact on resident income. In addition, because land ownership is highly concentrated, it means local economic benefits of unconventional drilling are heavily concentrated among a small percentage of the population, potentially raising equity issues about the distribution of costs and benefits from such activity.

Suggested Citation

  • Kirsten Hardy & Timothy W. Kelsey, 2015. "Local income related to Marcellus shale activity in Pennsylvania," Community Development, Taylor & Francis Journals, vol. 46(4), pages 329-340, October.
    • Handle: RePEc:taf:comdev:v:46:y:2015:i:4:p:329-340
    DOI: 10.1080/15575330.2015.1059351
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15575330.2015.1059351
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15575330.2015.1059351?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jason Brown & John Pender & Jeremy G. Weber, 2013. "Rural wealth creation and emerging energy industries: lease and royalty payments to farm households and businesses," Research Working Paper RWP 13-07, Federal Reserve Bank of Kansas City.
    2. repec:fip:fedkrw:rwp2013-07 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brown, Jason P. & Fitzgerald, Timothy & Weber, Jeremy G., 2016. "Capturing rents from natural resource abundance: Private royalties from U.S. onshore oil & gas production," Resource and Energy Economics, Elsevier, vol. 46(C), pages 23-38.
    2. Timothy M. Komarek, 2018. "Crime and natural resource booms: evidence from unconventional natural gas production," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 113-137, July.
    3. Jessica A. Crowe, 2019. "The impact of shale development on crop farmers: how the size and location of farms matter," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(1), pages 17-33, March.
    4. HOROBEȚ Alexandra & BULAI Vlad Cosmin, 2019. "Assessing the Local Developmental Impact of Hydrocarbon Exploitation in a Mature Region: A Random Forest Approach," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    5. Meng, Qingmin, 2018. "Fracking equity: A spatial justice analysis prototype," Land Use Policy, Elsevier, vol. 70(C), pages 10-15.
    6. Jason Brown & Timothy Fitzgerald & Jeremy G. Weber, 2016. "Asset Ownership, Windfalls, and Income: Evidence from Oil and Gas Royalties," Research Working Paper RWP 16-12, Federal Reserve Bank of Kansas City.
    7. Rodríguez-Puello, Gabriel, 2024. "Digging for Trouble? Uncovering the Link Between Mining Booms and Crime," OSF Preprints s8ayp, Center for Open Science.
    8. Hoy, Kyle A. & Xiarchos, Irene M. & Kelsey, Timothy W. & Brasier, Kathryn J. & Glenna, Leland L., 2018. "Marcellus Shale Gas Development and Farming," Agricultural and Resource Economics Review, Cambridge University Press, vol. 47(3), pages 634-664, December.
    9. Seung Jin Cho & Brent Kreider & John V. Winters, 2023. "Resource booms, state economic conditions, and child food security," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1734-1752, September.
    10. 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.
    11. Fleming, David & Komarek, Timothy & Partridge, Mark & Measham, Thomas, 2015. "The Booming Socioeconomic Impacts of Shale: A Review of Findings and Methods in the Empirical Literature," MPRA Paper 68487, University Library of Munich, Germany.
    12. Brown, Jason P. & Coupal, Roger & Hitaj, Claudia & Kelsey, Timothy W. & Krannich, Richard S. & Xiarchos, Irene M., 2017. "New Dynamics in Fossil Fuel and Renewable Energy for Rural America," USDA Miscellaneous 260676, United States Department of Agriculture.
    13. Alison M. Bamber & Stephanie H. Hasanali & Anil S. Nair & Sharon M. Watkins & Daniel I. Vigil & Michael Van Dyke & Tami S. McMullin & Kristy Richardson, 2019. "A Systematic Review of the Epidemiologic Literature Assessing Health Outcomes in Populations Living near Oil and Natural Gas Operations: Study Quality and Future Recommendations," IJERPH, MDPI, vol. 16(12), pages 1-20, June.
    14. Joshua L. Warren & Jiachen Cai & Nicholaus P. Johnson & Nicole C. Deziel, 2022. "A discrete kernel stick‐breaking model for detecting spatial boundaries in hydraulic fracturing wastewater disposal well placement across Ohio," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 71(1), pages 175-193, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brown, Jason P. & Fitzgerald, Timothy & Weber, Jeremy G., 2016. "Capturing rents from natural resource abundance: Private royalties from U.S. onshore oil & gas production," Resource and Energy Economics, Elsevier, vol. 46(C), pages 23-38.
    2. Hitaj, Claudia & Weber, Jeremy G. & Hopkins, Jeffrey W. & Erickson, Kenneth W., 2018. "Ownership of Oil and Gas Rights and Farm Sector Income and Wealth," 2018 Annual Meeting, August 5-7, Washington, D.C. 274316, Agricultural and Applied Economics Association.
    3. Weber, Jeremy G. & Hitaj, Claudia, 2015. "What Can We Learn about Shale Gas Development from Land Values? Opportunities, Challenges, and Evidence from Texas and Pennsylvania," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(2), pages 40-58, August.
    4. Allison Borchers & Jennifer Ifft & Todd Kuethe, 2014. "Linking the Price of Agricultural Land to Use Values and Amenities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1307-1320.
    5. Cortney Cowley, 2016. "The Dispersion of Farmland Values in the Tenth District," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 29-67.
    6. Brown, Jason P. & Coupal, Roger & Hitaj, Claudia & Kelsey, Timothy W. & Krannich, Richard S. & Xiarchos, Irene M., 2017. "New Dynamics in Fossil Fuel and Renewable Energy for Rural America," USDA Miscellaneous 260676, United States Department of Agriculture.
    7. Jason Brown & Timothy Fitzgerald & Jeremy G. Weber, 2016. "Asset Ownership, Windfalls, and Income: Evidence from Oil and Gas Royalties," Research Working Paper RWP 16-12, Federal Reserve Bank of Kansas City.
    8. Haikola, Simon & Anshelm, Jonas, 2020. "Evolutionary governance in mining: Boom and bust in peripheral communities in Sweden," Land Use Policy, Elsevier, vol. 93(C).
    9. Hitaj, Claudia & Suttles, Shellye, 2016. "Trends in U.S. Agriculture's Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass," Economic Information Bulletin 262140, United States Department of Agriculture, Economic Research Service.
    10. Harleman, Max & Weber, Jeremy G., 2017. "Natural resource ownership, financial gains, and governance: The case of unconventional gas development in the UK and the US," Energy Policy, Elsevier, vol. 111(C), pages 281-296.
    11. Hitaj, Claudia & Weber, Jeremy & Erickson, Ken, 2018. "Ownership of Oil and Gas Rights: Implications for U.S. Farm Income and Wealth," Economic Information Bulletin 276228, United States Department of Agriculture, Economic Research Service.
    12. Christian Brannstrom & Mary Tilton & Andrew Klein & Wendy Jepson, 2015. "Spatial Distribution of Estimated Wind-Power Royalties in West Texas," Land, MDPI, vol. 4(4), pages 1-18, December.
    13. Grout, Travis & Ifft, Jennifer & Malinovskaya, Anna, 2021. "Energy income and farm viability: Evidence from USDA farm survey data," Energy Policy, Elsevier, vol. 155(C).
    14. Siu, Wai Yan & Akhundjanov, Sherzod B., 2020. "Fracking Boom and Agricultural Doom: Evidence from Kern County, California," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304255, Agricultural and Applied Economics Association.
    15. Hoy, Kyle A. & Xiarchos, Irene M. & Kelsey, Timothy W. & Brasier, Kathryn J. & Glenna, Leland L., 2018. "Marcellus Shale Gas Development and Farming," Agricultural and Resource Economics Review, Cambridge University Press, vol. 47(3), pages 634-664, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:comdev:v:46:y:2015:i:4:p:329-340. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCOD20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.