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A Review of the Economic, Environmental, and Health Impacts of the Fracking Boom
... This vertical governance exercise in service provision may require localities to hire personnel and invest in new or more equipment (Bohnenkamp et al., 2011). However, many localities instead shift new oil and gas revenue toward capital expenditures, debt reduction, or reducing budgetary burdens, rather than hiring to meet increased public service demands (Black et al., 2020;Environmental Law Institute (ELI) and Washington & Jefferson College (WJ), 2014). ...
Scholarship on boom-busts cycles in resource extraction often assumes that affected resource-rich communities are at best reactive, at worst helpless, in the face of the large, exogenous shocks this cycle visits upon them. Researchers infrequently examine what communities themselves can do to improve their economic prospects and residents' quality of life amidst booms and busts. In this review paper, we identify and synthesize work scattered across disparate academic and gray literature—in planning, law, community economic development, rural sociology, economics, and political science, among others—to holistically assess what we know about how communities can use local policymaking to manage impacts of booms and busts associated with unconventional oil and gas drilling (UOGD), often called “fracking.” We highlight examples of communities tackling this task using vertical and horizontal governance strategies and distill expert recommendations for how communities can build boom-bust resiliency generally and in key areas impacted by UOGD. © 2022 The Authors. Review of Policy Research published by Wiley Periodicals LLC on behalf of Policy Studies Organization.
The shale oil and gas boom has had large economic, environmental, and social impacts on rural communities in the United States. This study provides novel estimates of the impacts of shale oil and gas development on light pollution in rural areas of the United States. Using nationwide, time-calibrated DMSP-OLS database from 2000 to 2012, we find robust evidence that the shale oil and gas boom significantly increased light pollution in rural areas. We then assess associations between horizontal drilling and subjective self-rated health using nationwide data from the Behavioral Risk Factor Surveillance System (BRFSS) from 2000 to 2012. Our findings suggest that insufficient sleep and poor health (physical or mental) are associated with increased drilling in rural areas. These results provide support for drilling-related light pollution as an additional environmental pathway of concern for public health beyond the mechanisms of air or water pollution.
Hydraulic fracturing, a method used in Northeastern British Columbia (Canada) to extract natural gas, can release contaminants with potential deleterious health effects on fetal development. To date, the association between hydraulic fracturing activity and birth outcomes has not been evaluated in this region.
To evaluate the association between the hydraulic fracturing well density/proximity and birth outcomes (birthweight, head circumference, preterm birth and small for gestational age (SGA)).
We used birth records from the Fort St John hospital between December 30, 2006 and December 29, 2016 (n = 6333 births). To estimate gestational exposure, we used inverse distance weighting (IDW) to calculate the density/proximity of hydraulic fracturing wells to pregnant women’s postal code centroid. For each birth, we calculated three IDWs using 2.5, 5, and 10 km buffer zones around women’s postal code centroid. We used linear and logistic regressions to evaluate associations between quartiles of postal code well density/proximity and birth outcomes, controlling for relevant covariates.
No associations were found between postal code well density/proximity and head circumference or SGA. A negative association was found between postal code well density/proximity and birthweight for infants born to women in the 2nd quartile of the 10 km buffer (β [95% confidence interval (CI)]: −47.28 g [−84.30; −10.25]), and in the 2nd (β [95% CI]: −40.87 g [−78.01; −3.73]) and 3rd (β [95% CI]: −42.01 g [−79.15; −4.87]) quartiles of the 5 km buffer. Increased odds of preterm birth were observed among women in the 2nd quartile of the 2.5 km buffer (odds ratio (OR) [95% CI]: 1.60 [1.30; 2.43]).
This is the first epidemiological study in Northeastern British Columbia evaluating associations between hydraulic fracturing and health outcomes. Our results show inconsistent patterns of association between hydraulic fracturing, preterm birth and reduced birthweight, and effect estimates did not match expected dose-response relationships.
Hydraulic fracturing, a.k.a., fracking, requires intense truck trips to transport a large volume of water within a narrow time window, posing a safety threat to other road users. This paper examines how fracking-related trucking affects fatal crashes in North Dakota using the exogenous timing of fracking operations near a road segment. The results show that an additional post-fracking well within six miles of a road segment led to 8% more fatal crashes and 7.1% higher per-capita costs in accidents. Transport activities at wells’ other operational stages did not affect fatal crashes. These additional crashes emerged mainly from collisions involving trucks, resulting from a higher traffic volume rather than a higher crash rate and occurring during daytime rush hours rather than during the rest of the day. Alcohol-involved crash drivers increased most likely due to their vulnerability to heavier fracking-induced traffic rather than more alcohol-involved truck drivers near the fracking sites.
Natural gas has become the largest fuel source for electricity generation in the United States and accounts for a third of energy production and consumption. However, the environmental and socioeconomic impacts across the supply chain and over the boom-and-bust cycle have not been comprehensively characterized. To provide insight for long-term decision-making for energy transitions, we estimate the cumulative effects of the shale gas boom in the Appalachian basin from 2004 to 2016 on air quality, climate change and employment. We find that air quality effects (1,200 to 4,600 deaths; US$23 billion +99%/−164%) and employment effects (469,000 job-years ±30%; US$21 billion ±30%) follow the boom-and-bust cycle, while climate impacts (US$12 billion to 94 billion) persist for generations well beyond the period of natural gas activity. Employment effects concentrate in rural areas where production occurs. However, almost half of cumulative premature mortality due to air pollution is downwind of these areas, occurring in urban regions of the northeast. The cumulative effects of methane and carbon dioxide emissions on global mean temperature over a 30-yr time horizon are nearly equivalent but over the long term, the cumulative climate impact is largely due to carbon dioxide. We estimate that a tax on production of US$2 per thousand cubic feet (+172%/−76%) would compensate for cumulative climate and air quality externalities across the supply chain. During the 2004–16 shale-gas development in the Appalachian basin, United States, premature mortality from lower air quality and employment followed a boom-and-bust cycle, whereas climate impacts will persist for generations beyond the activity.
This paper examines local labor market outcomes from an oil and gas boom. We examine two main outcomes; the probability of employment and the log wages of workers employed outside the oil and gas industry for Texas and the rest of the United States across gender, race, and ethnicity. We find that men and women gain employment in the oil and gas industry during booms, but such gains are much larger for men and are largest for black and Hispanic men. We also find positive income spillovers for workers in other industries that are similar in magnitude across demographic groups.
Using national data on county-level mortality, coal mining, and shale development, we examine the effects of resource booms and busts on mortality in the United States. We find evidence that decreases in operating coal mines increased total all-cause mortality, non-drug mortality, and opioid overdose mortality, especially for counties with greater than 10 operating coal mines in 2000. Our model results for drug overdose mortality and opioid overdose mortality are sensitive to the panel's start year. For shale development, the shale boom is associated with increases in non-drug suicides but otherwise had little impact on mortality. Our findings suggest a potential role for job-training programs and the cultivation of local healthcare resources in regions suffering coal busts and suicide prevention in areas with shale development.
Although there is strong evidence that oil and natural gas development lead to decreases in local ambient air quality, there is less evidence of a causal link between these activities and human health. This paper explores the environmental health costs of burning natural gas by-products during crude oil extraction – flaring. We estimate the impact of flared natural gas on respiratory health by using quasi-random variation in upwind flaring generated by the interaction of wind patterns and natural gas processing capacity. Specifically, we construct a novel dataset to estimate the causal effect of increased upwind flaring on the monthly respiratory-related hospital visitation rate by using the number of upwind wells that are connected to a capacity-constrained natural gas processing facility as an instrument for monthly upwind flaring. We find that a 1% increase in the amount of flared natural gas in North Dakota would increase the respiratory-related hospital visitation rate by 0.73%. Furthermore, zip codes that were exposed to more than half of all flared natural gas extracted less than 20% of all resource wealth during the sample time period, and the zip codes exposed to a disproportionate amount of flaring tend to be economically-disadvantaged and communities of color. Our estimates indicate that the health costs constitute a material portion of the external cost of flaring, and therefore ought to be considered in global initiatives to reduce flaring.
The United States may have more than 1 million abandoned oil and gas wells that were never properly decommissioned (plugged) and that may be leaking harmful liquids and gases. Exploiting the quasi-random assignment of well plugging in a large county in Pennsylvania, we find that over half a century—and in some cases over a century—the two acres around unplugged wells had roughly half as much building as around plugged wells. Further analysis suggests less local investment rather than shifting within a locality. Forgone investment, in turn, depressed property values by 12%. © 2022 The Association of Environmental and Resource Economists. All rights reserved.
This study assesses the health risks associated with drinking water contamination using variation in the timing and location of shale gas development (SGD). Our novel dataset, linking health and drinking water outcomes to shale gas activity through water sources, enables us to provide new estimates of the causal effects of water pollution on health and to isolate drinking water as a specific mechanism of exposure for SGD. We find consistent and robust evidence that drilling shale gas wells negatively impacts both drinking water quality and infant health. These results indicate large social costs of water pollution and provide impetus for re-visiting the regulation of public drinking water.
Future conventional and renewable energy production will predominantly occur on farmland, resulting in economic gains as well as potential negative externalities for farmland owners and rural communities. However there is limited research on the economic impact of energy production that takes place on farmland. This study uses the discrete change in expectations caused by the 2008 New York State moratorium on hydraulic fracturing to investigate the net impact of shale gas development on farmland values. We use a difference-in-differences empirical design with a hedonic pricing model. We find that the moratorium led to net economic losses for rural landowners in New York’s Southern tier, as reflected in farmland values declining approximately $1,400/acre.
Background
Whereas it is plausible that unconventional natural gas development (UNGD) may adversely affect cardiovascular health, little is currently known. We investigate whether UNGD is associated with acute myocardial infarction (AMI).
Methods
In this observational study leveraging the natural experiment generated by New York’s ban on hydraulic fracturing, we analyzed the relationship between age- and sex-specific county-level AMI hospitalization and mortality rates and three UNGD drilling measures. This longitudinal panel analysis compares Pennsylvania and New York counties on the Marcellus Shale observed over 2005-2014 (N=2,840 county-year-quarters).
Results
A hundred cumulative wells is associated with 0.26 more hospitalizations per 10,000 males 45-54y.o. (95% CI 0.07,0.46), 0.40 more hospitalizations per 10,000 males 65-74y.o. (95% CI 0.09,0.71), 0.47 more hospitalizations per 10,000 females 65-74y.o. (95% CI 0.18,0.77) and 1.11 more hospitalizations per 10,000 females 75y.o.+ (95% CI 0.39,1.82), translating into 1.4-2.8% increases. One additional well per square mile is associated with 2.63 more hospitalizations per 10,000 males 45-54y.o. (95% CI 0.67,4.59) and 9.7 hospitalizations per 10,000 females 75y.o.+ (95% CI 1.92,17.42), 25.8% and 24.2% increases respectively. As for mortality rates, a hundred cumulative wells is associated with an increase of 0.09 deaths per 10,000 males 45-54y.o. (95% CI 0.02,0.16), a 5.3% increase.
Conclusions
Cumulative UNGD is associated with increased AMI hospitalization rates among middle-aged men, older men and older women as well as with increased AMI mortality among middle-aged men. Our findings lend support for increased awareness about cardiovascular risks of UNGD and scaled-up AMI prevention as well as suggest that bans on hydraulic fracturing can be protective for public health.
This paper exploits county-level variation in exposure to news about labor markets impacted by fracking to show that access to information about employment opportunities affects migration. Exposure to newspaper articles about fracking increased migration to areas mentioned in the news by 2.4% on average, concentrated among young, unmarried, less educated men. Commuting also increased, sentiment of the news matters, and TV news has an impact. Google searches for “fracking” and names of states specifically mentioned spike after news broadcasts about fracking. Counties experiencing weak labor markets are the most responsive, suggesting that these areas see large benefits to information provision.
Oklahoma’s households have recently faced several thousand higher-probability but low-impact earthquakes induced by nearby shale gas development. This type of seismic activity is different from natural-occurring earthquakes, which are generally constituted by one, high-loss event. We investigate the mechanisms through which earthquakes may influence household perceptions of risk by modeling changes to property values in and out of seismically-active zones. We estimate that the induced earthquakes are spatially concentrated, which is partially influenced by governmental limits placed on natural gas production and wastewater injections. Additionally, we explore the underlying measure of earthquake intensity and identify its importance in modeling seismic impacts. Controlling for the stock-flow dynamics of seismicity through time, we estimate that Oklahoma County’s cumulative experience of earthquakes led to a diminution of property values. The impacts are further exacerbated by risk-saliency effects, as reflected in declining values associated with nearby wastewater injections and natural gas production.
Several studies note the large quantity of water used to hydraulically fracture oil and gas wells. We quantify this water use and its effects on water use for irrigating crops. For nine western states in 2017, water use in fracking represented 1.7 percent of water use in irrigation overall, but up to 55 percent in the Bakken shale of North Dakota, 28 percent in Oklahoma shale regions, and 12 percent in the Eagle Ford shale of Texas. However, in counties where the percentage of water use for fracking relative to irrigation is large, it is primarily because such counties have had minimal historical irrigation. We analyze the effect of state water policies governing the transfer of water from farming to fracking on water withdrawals for the two sectors. In North Dakota, which allowed farmers to forego irrigating and sell water to energy firms, each acre-foot of water used in fracking displaced about 1.1 acre feet from irrigation, thereby avoiding an increase in total withdrawals. Weaker evidence suggests an increase in irrigation in Oklahoma and Texas. Because of the lack of displacement in Texas and Oklahoma, concerns that fracking contributes to excess withdrawals in the present time may be warranted.
Feyrer, Mansur, and Sacerdote (2017) estimates the spatial dispersion of the effects of the recent shale-energy boom by unconditionally regressing income and employment on energy production at various levels of geographic aggregation. However, producing counties tend to be located near each other and receive inward spillovers from neighboring production. This inflates the estimated effect of own-county production and spatial aggregation does not address this. We propose an alternative estimation strategy that accounts for these spillovers and identify reduced propagation effects. The proposed estimation strategy can be applied more generally to estimate the dispersion of multiple, simultaneously occurring economic shocks. (JEL E24, E32, J31, Q35, Q43, R11, R23)
Unconventional oil and gas (UOG) production has rapidly expanded, making the U.S. the top producer of hydrocarbons. The industrial process now pushes against neighborhoods, schools, and people's daily lives. I analyze extensive mixed methods data collected over three years in Colorado - including 75 in-depth interviews and additional participant observation - to show how living amid industrial UOG production generates chronic stress and negative mental health outcomes, such as self-reported depression. I show how UOG production has become a neighborhood industrial activity that, in turn, acts as a chronic environmental stressor. I examine two key drivers of chronic stress - uncertainty and powerlessness - and show how these mechanisms relate to state-level institutional processes that generate patterned procedural inequities. This includes inadequate access to transparent environmental and public health information about UOG production's potential risks and limited public participation in decisions about production, with negative implications for mental health.
Background:
Recent advancements in drilling technology led to a rapid increase in natural gas development (NGD). Air pollution may be elevated in these areas and may vary by drilling type (conventional and unconventional), production volume and gas flaring. Impacts of NGD on paediatric asthma are largely unknown. This study quantifies associations between specific NGD activities and paediatric asthma hospitalizations in Texas.
Methods:
We leveraged a database of Texas inpatient hospitalizations between 2000 and 2010 at the zip code level by quarter to examine associations between NGD and paediatric asthma hospitalizations, where our primary outcome is 0 vs ≥1 hospitalization. We used quarterly production reports to assess additional drilling-specific exposures at the zip code-level including drilling type, production and gas flaring. We developed logistic regression models to assess paediatric asthma hospitalizations by zip code-quarter-year observations, thus capturing spatiotemporal exposure patterns.
Results:
We observed increased odds of ≥1 paediatric asthma hospitalization in a zip code per quarter associated with increasing tertiles of NGD exposure and show that spatiotemporal variation impacts results. Conventional drilling, compared with no drilling, is associated with odds ratios up to 1.23 [95% confidence interval (CI): 1.13, 1.34], whereas unconventional drilling is associated with odds ratios up to 1.59 (95% CI: 1.46, 1.73). Increasing production volumes are associated with increased paediatric asthma hospitalizations in an exposure-response relationship, whereas associations with flaring volumes are inconsistent.
Conclusions:
We found evidence of associations between paediatric asthma hospitalizations and NGD, regardless of drilling type. Practices related to production volume may be driving these positive associations.
Technological advances in oil and gas drilling have enabled the productive extraction of natural gas in new regions. The benefits from employment and income opportunities can help stimulate economies and may be valued by local residents. At the same time, however, shale gas activity can alter natural landscapes and is associated with negative externalities, including potential groundwater contamination. While some previous research has examined the impact of shale development, our paper focuses on the local impacts in West Virginia, a state with a long history of resource-extraction and one whose economy has lagged the nation. Because of its history of resource extraction, communities in West Virginia who may have limited other economic prospects may value the activity differently. Additionally, most of the previous research used data during the initial boom, ignoring the slowdown that followed. Using the coarsened exact matching (CEM) technique, we match houses near producing wells with other similar houses, in order to examine how property values in West Virginia are affected by proximity to horizontal producing wells. This technique helps compensate for the relatively small number of housing transactions in West Virginia, ensuring we have a good counterfactual. After matching, we estimate the average capitalization effect of houses near producing shale wells. We find that the price of all houses (regardless of water source) decreases as the number of surrounding wells increases. However, we also find some evidence that this effect varies over time and that the negative capitalization effect attenuates over space.
The authors explore the educational response to fracking—a recent technological breakthrough in the oil and gas industry—by taking advantage of the timing of its diffusion and spatial variation in shale reserves. They show that fracking has significantly increased relative demand for less-educated male labor and increased high school dropout rates of male teens, both overall and relative to females. Estimates imply that, absent fracking, the teen male dropout rate would have been 1 percentage point lower over the period 2011–15 in the average labor market with shale reserves, implying an elasticity of school enrollment with respect to earnings below historical estimates. Fracking increased earnings and job opportunities more among young men than male teenagers, suggesting that educational decisions respond to improved earnings prospects, not just opportunity costs. Other explanations for the findings, such as changes in school quality, migration, or demographics, receive less empirical support.
Increasing concerns about the water-related impacts posed by shale gas development have prompted the need for protecting water resources. Determining the preferences for shale water management is critical for the design and implementation of cost-effective management strategies. Nevertheless, the public's multidimensional preferences for different aspects of the shale water management have not yet been addressed in shale-related studies. To this end, a choice experiment is used to examine the preference heterogeneity for shale water management that would improve water consumption, wastewater recycling, and water quality monitoring in Fuling shale gas field, southwest China. Results from a random parameter logit model show that residents' average WTP is 45.76 yuan per year per household for the improvements of all water-related attributes to the highest qualitative level. The accumulated welfare gains indicate that local government could increase the gas price by 0.058 yuan per cubic meter for implementing water management strategies. We also find considerable preference heterogeneity in both systematic and random utility components, and average WTP is significantly influenced by the respondent's demographical and psychological characteristics. The findings highlight the potential to find socially acceptable ways to promote shale water management and provide insight into the relevant policymaking process.
This study reports the results from continuous measurement of indoor and outdoor radon concentrations in the area surrounding an unconventional shale gas exploration site in North Yorkshire, England, prior to the commencement of hydraulic fracturing. Public Health England has monitored the baseline radon levels in homes and in outdoor air in the Vale of Pickering since 2015. The statistical analysis presented here includes three full years (November 2015–December 2018) of indoor and four and half years (October 2015 – April 2019) of outdoor radon measurements.
Stratified sampling was used to select 171 dwellings in four areas, with two different radon potential. Statistical analysis confirms that homes in Kirby Misperton and Little Barugh and those in Yedingham are situated in areas with low radon potential, as was predicted by the UK radon potential map. On the other hand, both Pickering and Malton are confirmed as radon Affected Areas.
Radon was measured continuously in the outdoor air using a newly developed outdoor kit containing passive radon detectors. The monitoring points were set up at 36 locations in the same local areas as those selected for the indoor monitoring. The results from statistical analysis show that outdoor radon had a different seasonality pattern to indoor radon. The monitoring of outdoor radon levels over the four and half years indicates a year-to-year variation in outdoor radon concentrations with levels fluctuating between 3 and 9 Bq m⁻³.
There was a very good agreement between long-term average radon concentrations measured using passive detectors and using an active AlphaGUARD monitor.
Spatial setback rules are a common form of oil and gas regulation worldwide - they require minimum distances between oil and gas operations and homes and other sensitive locations. While setbacks can reduce exposure to potential harms associated with oil and gas production, they can also cause substantial quantities of oil and gas resources to be unavailable for extraction. Using both theoretical modeling and spatial analysis with GIS tools on publicly available data, we determine oil and gas resource loss under different setback distances, focusing on Colorado counties as a case study. We show that increasing setbacks results in small resource loss for setbacks up to 1500 feet, but resource loss quickly increases with longer setbacks. Approximately $4.5 billion in annual resource revenues would be lost in Colorado under 2500-foot setbacks, a distance recently proposed in Colorado Proposition 112 and California AB 345.
Background:
Prior studies suggest exposure to oil and gas development (OGD) adversely affects birth outcomes, but no studies have examined flaring-the open combustion of natural gas-from OGD.
Objectives:
We investigated whether residential proximity to flaring from OGD was associated with shorter gestation and reduced fetal growth in the Eagle Ford Shale of south Texas.
Methods:
We conducted a retrospective cohort study using administrative birth records from 2012 to 2015 (
N
=
23,487
) and satellite observations of flaring activity during pregnancy within
5
km
of maternal residence. Multivariate logistic and linear regression models were used to estimate associations between four outcomes (preterm birth, small-for-gestational age, continuous gestational age, and term birthweight) and exposure to a low (1-9) or high (
≥
10
) number of nightly flare events, as compared with no exposure, while controlling for known maternal risk factors. We also examined associations with the number of oil and gas wells within
5
km
using data from DrillingInfo (now Enverus).
Results:
Exposure to a high number of nightly flare events was associated with a 50% higher odds of preterm birth [
odds ratio (OR)
=
1.50
(95% CI: 1.23, 1.83)] and shorter gestation [
mean difference
=
-
1.9
(95% CI:
-
2.8
,
-
0.9
) d] compared with no exposure. Effect estimates were slightly reduced after adjustment for the number of wells within
5
km
. In stratified models these associations were present only among Hispanic women. Flaring and fetal growth outcomes were not significantly associated. Women exposed to a high number of wells (fourth quartile,
≥
27
) vs. no wells within
5
km
had a higher odds of preterm birth [
OR
=
1.31
(95% CI: 1.14, 1.49)], shorter gestation [
-
1.3
(95% CI:
-
1.9
,
-
0.8
) d], and lower average birthweight [
-
19.4
(95% CI:
-
36.7
,
-
2.0
) g].
Discussion:
Our study suggests exposure to flaring from OGD is associated with an increased risk of preterm birth. Our findings need to be confirmed in other populations. https://doi.org/10.1289/EHP6394.
Background:
Studies suggest associations between oil and gas development (OGD) and adverse birth outcomes, but few epidemiological studies of oil wells or inactive wells exist, and none in California.
Objective:
Our study aimed to investigate the relationship between residential proximity to OGD and birth outcomes in California.
Methods:
We conducted a retrospective cohort study of 2,918,089 births to mothers living within 10 km of at least one production well between January 1, 2006 and December 31, 2015. We estimated exposure during pregnancy to inactive wells count (no inactive wells, 1 well, 2-5 wells, 6+ wells) and production volume from active wells in barrels of oil equivalent (BOE) (no BOE, 1-100 BOE/day,
>
100
BOE
/
day
). We used generalized estimating equations to examine associations between overall and trimester-specific OGD exposures and term birth weight (tBW), low birth weight (LBW), preterm birth (PTB), and small for gestational age birth (SGA). We assessed effect modification by urban/rural community type.
Results:
Adjusted models showed exposure to active OGD was associated with adverse birth outcomes in rural areas; effect estimates in urban areas were close to null. In rural areas, increasing production volume was associated with stronger adverse effect estimates. High (
>
100
BOE
/
day
) vs. no production throughout pregnancy was associated with increased odds of LBW [odds ratio
(
OR
)
=
1.40
, 95% confidence interval (CI): 1.14, 1.71] and SGA (
OR
=
1.22
, 95% CI: 1.02, 1.45), and decreased tBW (mean difference = -36 grams, 95% CI: -54, -17), but not with PTB (
OR
=
1.03
, 95% CI: 0.91, 1.18).
Conclusion:
Proximity to higher production OGD in California was associated with adverse birth outcomes among mothers residing in rural areas. Future studies are needed to confirm our findings in other populations and improve exposure assessment measures. https://doi.org/10.1289/EHP5842.
This paper examines the impact of the U.S. fracking boom on local STI transmission rates and prostitution activity as measured by online prostitution review counts. We first document significant and robust positive effects on gonorrhea rates in fracking counties at the national level. But we find no evidence that fracking increases prostitution when using our national data, suggesting sex work may not be the principal mechanism linking fracking to gonorrhea growth. To explore mechanisms, we then focus on remote, high-fracking production areas that experienced large increases in sex ratios due to male in-migration. For this restricted sample we find enhanced gonorrhea transmission effects and moderate evidence of extensive margin effects on prostitution markets. This study highlights public health concerns relating to economic shocks and occupational conditions that alter the local demographic composition.
Efficient pollution regulation equalizes marginal abatement costs across sources. We study a new flaring regulation in North Dakota and document its efficiency. We attribute most of the observed flaring reductions at new wells in the state since late 2014 to the regulation. We construct firm-specific marginal abatement cost curves and find that the same quantity of flaring reductions could have been achieved at 44% lower cost by taxing flared gas instead of imposing firm-specific requirements. Taxing flared gas at the existing public lands royalty rate would achieve 99% of the flaring reductions at 46% lower cost.
Unconventional extraction techniques including hydraulic fracturing or “fracking” have led to a boom in oil and gas production the Eagle Ford shale play, Texas, one of the most productive regions in the United States. Nearly 400,000 people live within 5 km of an unconventional oil or gas well in this largely rural area. Flaring is associated primarily with unconventional oil wells and is an increasingly common practice in the Eagle Ford to dispose of excess gas through combustion. Flares can operate continuously for months and release hazardous air pollutants such as particulate matter and volatile organic compounds in addition to causing light and noise pollution and noxious odors. We estimated ethnic disparities in exposure to flaring using satellite observations from the Visible Infrared Imaging Spectroradiometer between March 2012-December 2016. Census blocks with majority Hispanic (>60%) populations were exposed to twice as many nightly flare events within 5 km as those with <20% Hispanics. We found that Hispanics were exposed to more flares despite being less likely than non-Hispanic White residents to live near unconventional oil and gas wells. Our findings suggest Hispanics are disproportionately exposed to flares in the Eagle Ford Shale, a pattern known as environmental injustice, which could contribute to disparities in air pollution and other nuisance exposures.
Exploiting positive labor market shocks from localized“fracking” booms, I estimate that fracking increased migration to impacted areas, but there is significant heterogeneity across both demographics and regions. Migrants to fracking areas were more likely to be male, unmarried, young, and less educated than movers more generally. These local booms increased in-migration rates to North Dakota fracking counties by nearly twice as much as other fracking areas. Differences across geography in labor market impacts, commuting behavior, initial population characteristics, or nonlinearities only partially explained this gap. There is evidence that heterogeneous information flows might be playing a role. © 2022 by the Board of Regents of the University ofWisconsin System (inline image) Supplementary materials are freely available online at: http://uwpress.wisc.edu/journals/journals/ jhr-supplementary.html
In Pennsylvania’s Marcellus Shale region, the recent shale gas boom profoundly reshaped communities, local institutions, and living circumstances for many residents. We focus on one particular local institution – the public school – to investigate the relationship between unconventional gas development and education funding. Using geographic information systems software, we identify unconventional drilling activity between 2007 and 2015 and link unconventional drilling point data with district-level state and federal data. We then use techniques from the matching literature to explore the relationship between unconventional drilling and the distribution of educational resources and opportunities. Evidence from our analysis suggests that, on average, districts experiencing unconventional drilling had lower per pupil revenues, locally-raised per pupil funding for schools, per pupil income, and per pupil property wealth than very similar districts that did not experience unconventional drilling.
Background:
Hydraulic fracturing together with directional and horizontal well drilling (unconventional oil and gas (UOG) development) has increased substantially over the last decade. UOG development is a complex process presenting many potential environmental health hazards, raising serious public concern.
Aim:
To conduct a scoping review to assess what is known about the human health outcomes associated with exposure to UOG development.
Methods:
We performed a literature search in MEDLINE and SCOPUS for epidemiological studies of exposure to UOG development and verified human health outcomes published through August 15, 2019. For each eligible study we extracted data on the study design, study population, health outcomes, exposure assessment approach, statistical methodology, and potential confounders. We reviewed the articles based on categories of health outcomes.
Results:
We identified 806 published articles, most of which were published during the last three years. After screening, 40 peer-reviewed articles were selected for full text evaluation and of these, 29 articles met our inclusion criteria. Studies evaluated pregnancy outcomes, cancer incidence, hospitalizations, asthma exacerbations, sexually transmitted diseases, and injuries or mortality from traffic accidents. Our review found that 25 of the 29 studies reported at least one statistically significant association between the UOG exposure metric and an adverse health outcome. The most commonly studied endpoint was adverse birth outcomes, particularly preterm deliveries and low birth weight. Few studies evaluated the mediating pathways that may underpin these associations, highlighting a clear need for research on the potential exposure pathways and mechanisms underlying observed relationships.
Conclusions:
This review highlights the heterogeneity among studies with respect to study design, outcome of interest, and exposure assessment methodology. Though replication in other populations is important, current research points to a growing body of evidence of health problems in communities living near UOG sites.
The land-use impacts of the rapid expansion of U.S. oil and gas infrastructure since the early 2000s are a focus of local, state, and federal policymakers. Agriculture is the dominant land use in many areas with active energy development. Prior studies find that energy development displaces agriculture and assume that this effect is both permanent and homogeneous. We take a novel approach, analyzing landowners' capacity to both anticipate displaced production prior to the drilling of oil and gas wells, and reclaim some land once wells are in production. Using North Dakota's Bakken Shale as a case study, we merge agricultural land-use data from 2006 to 2014 with locations and drilling dates of oil and gas wells. We then use panel fixed-effects models to estimate the spatially- and intertemporally-heterogeneous effects of additional wells on agricultural land. We find that drilling is associated with reduced surrounding crop cover and increased fallow acreage. Importantly, the duration of these effects differs across agricultural land covers, and effects are in some cases temporary. Our analysis suggests that overlooking dynamic land use impacts may overestimate the cumulative net impact of oil and gas development on agricultural land uses by up to a factor of two.
Biodiversity is declining worldwide, and the costs of biodiversity losses are increasingly being recognized by economists. In this article, we first review the multiple meanings of biodiversity, moving from species richness and simple abundance-weighted species counts to more complex measures that take account of taxonomic distance and functionality. We then explain the ways in which protecting biodiversity generates economic benefits in terms of direct and indirect values. Empirical approaches to estimating direct and indirect values are presented, along with a selection of recent evidence on how substantial these values are. The use of asset accounting approaches to track biodiversity values over time is discussed, in the context of sustainable development paths. Finally, we review some important challenges in valuing biodiversity that remain to be solved.
Exploiting geological variation and timing in the initiation of hydraulic fracturing, we find that fracking leads to sharp increases in oil and gas recovery and improvements in a wide set of economic indicators. There is also evidence of deterioration in local amenities, which may include increases in crime, noise, and traffic and declines in health. Using a Rosen-Roback-style spatial equilibrium model to infer the net welfare impacts, we estimate that willingness-to-pay (WTP) for allowing fracking equals about $2,500 per household annually (4.9 percent of household income), although WTP is heterogeneous, ranging from more than $10,000 to roughly 0 across 10 shale regions.(JEL D12, K42, L71, Q35, Q51, Q53, R41)
Whether improved local economic conditions lead to better student outcomes is theoretically ambiguous and will depend on how schools use additional revenues and how students and teachers respond to rising private sector wages. The Texas boom in shale oil and gas drilling, with its large and localized effects on wages and the tax base, provides a unique opportunity to address this question that spans the areas of education, labor markets, and public finance. An empirical approach using variation in shale geology across school districts shows that the boom reduced test scores and student attendance, despite tripling the local tax base and creating a revenue windfall. Schools spent additional revenue on capital projects and debt service, but not on teachers. As the gap between teacher wages and private sector wages grew, so did teacher turnover and the percentage of inexperienced teachers, which helps explain the decline in student achievement. Changes in student composition did not account for the achievement decline but instead helped to moderate it. The findings illustrate the potential value of using revenue growth to retain teachers in times of rising private sector wages.
Since advances in horizontal drilling and hydraulic fracturing technologies have opened oil and gas development in previously unreachable areas, air pollution emissions have increased from the burning (i.e., flaring) or releasing (i.e., venting) of natural gas at oil and gas extraction sites. While venting and flaring is a growing concern, accounting of how much gas is vented and flared, and where this occurs, remains limited. The purpose of this paper is to describe two methods for estimating venting and flaring volumes - self-reports required by state law and satellite imagery radiant heat measurements - and to compare these methods using the case of Texas Eagle Ford and Permian Basin venting and flaring practices from 2012 to 2015. First, we used data self-reported by companies to the Texas Railroad Commission (TxRRC), and National Oceanic and Atmospheric Administration (NOAA) data captured by satellite-based Visible Infrared Imaging Radiometer Suite sensors, to estimate the annual total volumes of gas vented and flared in the Eagle Ford and Permian Basin from 2012 to 2015. Next, we developed a method using a geographic information system to link and compare TxRRC and NOAA county-based and point-based volume estimates. Finally, we conducted case studies of two oil and gas fields to better understand how TxRRC and NOAA venting and flaring volumes differ. We find both TxRRC and NOAA estimated venting and/or flaring volumes steadily increased from 2012 to 2015. Additionally, TxRRC reports captured about half the volumes estimated by NOAA. This suggests that self-reported volumes significantly underestimate the volume of gas being vented or flared. However, this research is limited by the data currently available. As such, future research and policy should further develop methods to systemically capture the extent to which oil and gas extraction facilities vent and flare natural gas.
Using data on the geographic location of fracking wells in four U.S. states with mandatory disclosure between 2011 and 2013 — Colorado, Oklahoma, Pennsylvania, and Texas — this paper analyzes the socio-demographic characteristics of people living close to fracking activity. Geo-coded well data from the FracFocus registry are merged to blockgroup-level socio-demographic data from the 2006–2010 American Community Survey and population density and land use data from EPA's Smart Location Database 2010. Different buffer zones around fracking wells are applied to capture effects at different spatial scales and to compare only areas with similar geological properties. We explain the distance to the nearest well within a county with fracking activity or within a buffer zone by race/ethnicity, income, educational attainment, various land-use control variables, and county fixed-effects. We find robust evidence that minorities, especially African Americans, disproportionately live near fracking wells, but less consistent evidence for environmental injustice by income or educational attainment. Strong heterogeneity across states can be observed, suggesting that an improvement in disclosure laws in other states, that would make similar analyses possible, is of great importance.
Unconventional gas development (fracking) is controversial in large part because of environmental and health concerns. We consider the concern that fracking leads to more carcinogenic radon gas in nearby buildings. Our empirical approach estimates treatment effects where treatment is continuous (number of wells) and varies in intensity (distance to the wells) and in duration of exposure (the time since wells were drilled). The approach allows any potential effect of fracking to vary non-linearly with the distance between the well and test site and, holding distance constant, the time between drilling and testing. Our main model gives a precisely estimated zero effect of wells on radon concentrations in nearby buildings. It also reveals that energy firms drilled wells in places with higher pre-existing radon levels, which, if ignored, makes it appear that wells within 2 km increase indoor radon but wells 3 km away do not. This explains the finding of a prior study showing a link between drilling and indoor radon.
Unconventional oil and gas development (UOGD) in the United States is increasingly being conducted on multi-well pads (MWPs) and in residential areas. We measured air pollution, noise, and truck traffic during four distinct phases of UOGD: drilling, hydraulic fracturing, flowback, and production. We monitored particulate matter (PM2.5), black carbon (BC), A-weighted (dBA) and C-weighted (dBC) noise using real-time instruments on 1 and 5-minute timescales, and truck traffic for 4-7 days per phase at a large 22-well pad sited in a residential area of Weld County, Colorado. Hydraulic fracturing, which requires frequent truck trips to move supplies and diesel engines to power the process, had the highest median air pollution levels of PM2.5 and BC and experienced the greatest number of heavy trucks per hour compared to other phases. Median air pollution was lowest during drilling at this MWP, possibly because an electric drill rig was used. The equivalent continuous noise level (Leq) exceeded guidelines of 50 dBA and 65 dBC for A-weighted and C-weighted noise, respectively, during all development phases. Our data show that these multiple stressors are present around the clock at these sites, and this work provides baseline measurements on likely human exposure levels near similarly sized MWPs.
The drilling phase of oil and natural gas development is a growing area of environmental justice (EJ) research, particularly in the United States. Its emergence complements longstanding EJ scholarship on later phases of the oil and gas commodity chain, such as pipeline transport, refining, and consumption. The growing scholarly attention to the EJ implications of drilling has been prompted by the surge in development of unconventional oil and gas resources in recent decades. More specifically, the oil and gas industry's adoption of horizontal drilling and hydraulic fracturing (a.k.a., "fracking" or "fracing") as methods for extracting oil and gas from a wider range of geologic formations has simultaneously heightened oil and gas production, brought extractive activities closer to more people, intensified them, and made well pad siting more flexible. Here, we provide a critical review of the novel EJ research questions that are being prompted by these on-the-ground changes in extractive techniques and patterns, propose an interdisciplinary conceptual framework for guiding EJ inquiry in this context, discuss key methodological considerations, and propose a research agenda to motivate future inquiry.
This analysis seeks to understand whether changes in oil regulation brought about by the shale revolution have restricted the pace of drilling and production. This hypothesis is tested using data on North Dakota and Montana both before and after North Dakota increased regulations that raise fixed costs. Results generally find that the new regulations had no statistical impact on the pace of drilling and production, however it is found that smaller operators reduced their production and exited. These results are instructive for policymakers who weigh the loss of economic welfare against improved environmental quality when deciding on new regulations.