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Sector Effects of the Shale Gas Revolution in the United States

Author

Listed:
  • Krupnick, Alan

    (Resources for the Future)

  • Wang, Zhongmin

    (Resources for the Future)

  • Wang, Yushuang

Abstract

This paper reviews the impact of the shale gas revolution on the sectors of electricity generation, transportation, and manufacturing in the United States. Natural gas is being substituted for other fuels, particularly coal, in electricity generation, resulting in lower greenhouse gas emissions from this sector. The use of natural gas in the transportation sector is currently negligible but is projected to increase with investments in refueling infrastructure and natural gas vehicle technologies. Petrochemical and other manufacturing industries have responded to lower natural gas prices by investing in domestically located manufacturing projects. This paper also speculates on the impact of a possible shale gas boom in China.

Suggested Citation

  • Krupnick, Alan & Wang, Zhongmin & Wang, Yushuang, 2013. "Sector Effects of the Shale Gas Revolution in the United States," RFF Working Paper Series dp-13-21, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-13-21
    as

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    File URL: http://www.rff.org/RFF/documents/RFF-DP-13-21.pdf
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    References listed on IDEAS

    as
    1. Curtis M. Oldenburg & M. Mercedes Maroto‐Valer, 2011. "Welcome," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 1(1), pages 1-2, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Timmins, Christopher & Vissing, Ashley, 2022. "Environmental justice and Coasian bargaining: The role of race, ethnicity, and income in lease negotiations for shale gas," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    2. Christian Growitsch & Simon Paulus & Heike Wetzel, 2017. "Competition and Regulation as a Means of Reducing CO2 Emissions: Experience from U.S. Fossil Fuel Power Plants," MAGKS Papers on Economics 201709, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Catherine Hausman & Ryan Kellogg, 2015. "Welfare and Distributional Implications of Shale Gas," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 46(1 (Spring), pages 71-139.
    4. Wesley Burnett, J. & Mothorpe, Christopher, 2021. "Human-induced earthquakes, risk salience, and housing values," Resource and Energy Economics, Elsevier, vol. 63(C).
    5. Christopher Hannum, 2023. "Effect of Natural Gas Prices on Renewable Portfolio Standard Impacts," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 391-403, March.
    6. Herman R. J. Vollebergh & Eric Drissen, 2014. "Unconventional Gas and the European Union: Prospects and Challenges for Competitiveness," CESifo Working Paper Series 5035, CESifo.

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    More about this item

    Keywords

    shale gas; electricity; transportation; and manufacturing;
    All these keywords.

    JEL classification:

    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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