Fracking s Youth And Considering Its Only Significant Sites

Literature Review Given fracking’s youth and considering its only significant sites are in the US, research is largely confined on the Marcellus region which runs across two-thirds of Pennsylvania and extends into other states (MSTEC 2011) or the Barnet region in Texas. Pennsylvania The Pennsylvania economy has been dominated by coal and steel in the past with more recent growth in services making up for the reductions in manufacturing (City Data 2010). Shale Effects From 2007-2012 Cruz, Smith and Stanley (2014) found there was an increase of 259.3% in employment in the oil and gas industry with this located more in north-eastern but also south-western Pennsylvania. For this period, wages for the oil and gas industry rose 36.3% compared†¦show more content†¦They find no significant changes in either wages or employment for Pennsylvania counties relative to New York counties post 2008 but significant increases in employment and wages for construction, natural resource and mining industries. Brown (2014) used an instrumental variables (IV) estimation to calculate that 12.7 additional jobs is associated with every billion cubic feet of natural gas production with 7.3 of these created in the mining sector, meaning there is little economic spill over into other sectors. The average county experienced an increase in wage per job of 5.8% and a 13.5% increase in population. However one instrument may not be exogenous if shale formations are known before in a county, production will more likely occur. Another problem is using the change in natural gas production as an instrument does not take into account the economic effects which come from exploration and construction before production starts. Tunstall (2015) uses a time series, cross section (TSCS) in South Texas and has seen crowding out effects with other industries where restaurants have had to resort to signing bonuses or very high wages to improve the difficulties they face in hiring new staff. This phenomenon agrees with Kilkenny and Partridge’s (2009) evidence which looks at exports and rural development on a county level. The areas that became increasingly