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Researchers and citizens alike question the long-term impacts of the shale oil boom on local communities. Studies have considered the boom’s effects on employment, income, mobility, and human capital acquisition. This research specifically builds on research considering shale effects on secondary schooling. Using county-level data from Texas, we in...
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Context 1
... examination focuses on the state of Texas. Figure 2 presents a map of the counties and shale plays under consideration, overlaying the number of oil spuds in each county. The Permian Basin and the Eagle Ford represent the shale plays over which the most oil drilling has occurred in the time period under consideration (2010)(2011)(2012)(2013)(2014). ...
Context 2
... different shale plays 3 have different extraction and quality rates (Lee, 2015), and the geography of the various shale plays may influence local conditions, so we include control variables for each of the five shale plays in Texas in our ordinary least squares (OLS) estimates. Furthermore, fixed geologic measures of resource quality could have different effects depending on other conditions such as changes in world energy market prices or new developments in oil drilling technology like ongoing improvements in hydraulic fracturing (Fleming et al., 2015). ...
Context 3
... a potential topic for future research, the economic and social motivations for dropping out may be similar for students from mining and agricultural migrant families. To prepare for the higher needs of migrant 12 children, many public Texas schools require 12 Migrant students are defined as those who have moved in the preceding 36 months so they or a defined family member could "obtain temporary employment in agriculture or fishing" (Murphy et al., 2016, p. 41). ...
Citations
... While a resource curse could contribute to declining educational attainment, several recent studies fail to find a relationship between measures of UOGD activity and dropout rates (Weber 2013, Carpenter et al. 2019. Cascio & Narayan (2015) suggest that the null findings in the literature may reflect unobserved migration patterns rather than decisions on human capital accumulation. ...
... Akin to educational funding, the same endogeneity and substitution concerns arise for educational attainment. Some research has stopped short of making causal inference (Carpenter et al. 2019), instead choosing to recognize that estimates are a combination of direct and indirect effects. To combat these causal issues, some researchers have utilized a two-stage least squares (2SLS) approach (Morissette et al. 2015, Zuo et al. 2019, with Zuo et al. (2019) implementing the proportion of a county overlaying a shale play as the instrumental variable, combined with county and state-by-year fixed effects. ...
The shale gas boom revolutionized the energy sector through hydraulic fracturing (fracking). High levels of energy production force communities, states, and nations to consider the externalities and potential risks associated with this unconventional oil and natural gas development (UOGD). In this review, we systematically outline the environmental, economic, and anthropogenic impacts of UOGD, while also considering the diverse methodological approaches to these topics. We summarize the current status and conclusions of the academic literature, in both economic and related fields, while also providing suggested avenues for future research. Causal inference will continue to be important for the evaluation of UOGD costs and benefits. We conclude that current economic, global, and health forces may require researchers to revisit outcomes in the face of a potential shale bust.
Expected final online publication date for the Annual Review of Resource Economics, Volume 13 is October 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.
... Within-country studies, ambiguous or no effects A few within-country abundance studies find no evidence of effect. Carpenter et al. (2019), for example, follow a panel of Texas counties from 2010 to 2014 to test whether the number of newly completed oil wells raises high school dropout rates. They control for local economic conditions, population density, and urban/rural adjacency, and instrument for the local wage rate using the interaction between energy prices and shale depth. ...
We survey the growing literature studying the effects of natural resource abundance or dependence on human capital accumulation, a key factor in development and economic growth. This survey distinguishes between measures of resource abundance versus dependence, and between input, outcome, or participation measures of education and health. We find that a majority of studies find adverse effects of natural resource abundance or dependence on education and health, but that a small to sizeable minority find mixed or beneficial effects. The sheer robustness of negative findings across numerous approaches lends credibility to theories that reliance on resource extraction risks negative effects on the quantity or quality of supply of education and health services, and the demand for advanced education. At the same time, the minority of studies finding positive resource effects suggests there are both methodological and policy lessons that can be learned.
... The oil and gas industry in the Permian Basin has experienced unprecedented growth since the mid-2000s. While generating significant short-term economic benefits to the local economies (Wang, 2020), it has also caused some socio-economic and environmental issues (e.g., Allred et al., 2015;Carpenter et al., 2019). The focus of this study is the impact on commuting patterns. ...
This study is set to quantify the impact of oil and gas production on the commuting pattern in the Permian Basin region. In particular, we focus on cross-county commuting that has shown a significant increase during the recent Permian Basin shale boom. Anecdotal evidence suggests that the increase is mainly driven by extended daily commuting and long-distance commuting (LDC) tied to the oil and gas industry. Our regression analysis integrating county-level commuting data and shale energy production data confirms that the impact is statistically significant. Using data from 67 counties in New Mexico and Texas between 2002 and 2017, we find that on average a one-million-BBLs increase in annual oil production leads to an increase of 100 inward commuters and an increase of 15 outward commuters. The net impact (inward – outward) is an increase of 85 commuters. By linking the empirical findings to the potential health, environmental, and socio-economic impacts of shale development with commuting being the channel of influence, further exploration suggests that the health and environmental impacts of extended daily commuting are much more significant compared to LDC. As far as the socio-economic aspect is concerned, both extended daily commuting and LDC can have significant impacts.
... While a resource curse could contribute to declining educational attainment, several recent studies fail to find a relationship between measures of UOGD activity and dropout rates (Weber 2013, Carpenter et al. 2019. Cascio & Narayan (2015) suggest that the null findings in the literature may reflect unobserved migration patterns rather than decisions on human capital accumulation. ...
... Akin to educational funding, the same endogeneity and substitution concerns arise for educational attainment. Some research has stopped short of making causal inference (Carpenter et al. 2019), instead choosing to recognize that estimates are a combination of direct and indirect effects. To combat these causal issues, some researchers have utilized a two-stage least squares (2SLS) approach (Morissette et al. 2015, Zuo et al. 2019, with Zuo et al. (2019) implementing the proportion of a county overlaying a shale play as the instrumental variable, combined with county and state-by-year fixed effects. ...
Global economic forces underpin political and social issues and have real impacts on the quality of life in local communities, cities, states and regions. In the face of potential volatility, leaders in every ‘place’ concern themselves with how they can ensure local economic resiliency for present and future generations. This book argues for the strategic management of places through intentional public policy that brings together stakeholders from the public, private and nonprofit sectors to create an inclusive and sustainable economic path forward. While many economists and political scientists have proposed one-size-fits-all approaches, this book puts forward a more holistic approach, giving local leaders and policymakers the tools to take inventory of their local contexts and providing case study examples of how to craft public policies that create prosperous and sustainable economic conditions.
From a country-wide perspective, the state of Texas contributes the second-highest amount to the GDP of the United States). Within Texas, the energy sector has emerged as one of the strongest and most promising factors for economic development. The invention of fracking gave the oil and gas industry advanced possibilities to reach resources in places where traditional methods had to surrender. This technique enabled the state of Texas to become the country’s most important oil and gas provider. However, fracking is claimed to cause various negative side effects, especially on nature and the environment. This may bring up plenty of challenges for communities, companies, and policymakers. This paper uses the framework from “Everything in its Place: Entrepreneurship and the Strategic Management of Cities, Regions, and States” by David B. Audretsch to analyze Texas and the impacts fracking has on the economy. Solutions to rectify the situation are presented. These include implementations for water usage, regulations for chemicals used in the process, and the strengthening of entrepreneurial activities at universities.KeywordsFracking, EnergyEnvironment and GrowthHealthTexas
Hydraulic fracturing (‘fracking’) is a policy problem that is both a spatial and temporal issue, touching on economic, environmental, health, safety, political and social concerns of interest to youth. This empirical study focuses on the impact of fracking on youth in communities in England. The Capabilities Approach is used as a lens for understanding the experiences of young people in their late teens. The article draws on focus groups with young people which took place within a 20 mile radius of exploratory fracking sites. The study contributes to understanding of youth experience of controversial energy interventions. Findings suggest that fracking prevents young people from living the lives they have reason to value, and has, and will continue to have, a negative impact on wellbeing in the present and in the future. Fracking creates conditions of corrosive disadvantage for affected youth. Greater inclusion of youth perspectives in environmental decision-making is needed.
