Fueling Up—The Economic Implications of America's Oil and Gas Boom

Houser and Mohan here analyze the economic implications of the recent technological boom in oil and natural gas drilling in the US, intended to guide policymakers in wise decision-making. After an overview of politics and economics pertaining to energy supply from the 1970s to the early 2010s, the authors summarize the technological basis of the domestic energy renaissance. A number of economics impacts are then addressed sequentially. First, a generalized macroeconomic analysis is provided, including assessment of stimulus potential, effects on trade and exchange, and long-term sequelae. Demand-side effects are discussed specifically, as well as differential benefits for different regions of the country and sectors of the economy. Two detailed chapters address the impact on the environment and considerations for navigating trade policy. In particular, the potential for cheaper domestic energy to lessen resistance to environmentally-based taxes and restrictions is discussed. An appendix lays out the models and assumptions used. Annotation c2014 Ringgold, Inc., Portland, OR (protoview.com)

Trevor Houser, visiting fellow at the Peterson Institute for International Economics during 2009–15, is partner at the Rhodium Group, where he leads the firm's energy and natural resources practice. He also codirects the Climate Impact Lab, a collaboration of leading research institutions combining climate, economic, and data science to quantify the risks climate change presents. During 2009, he served as senior advisor to the US State Department, where he worked on a broad range of international energy and environmental policy issues. His areas of research include energy and environmental policy and markets and energy-related international trade and investment issues. He is author or coauthor of The Economic Risks of Climate Change: An American Prospectus (2015), Leveling the Carbon Playing Field: International Competition and US Climate Policy Design (2008), and China Energy: A Guide for the Perplexed (2007).

Shashank Mohan is a director at RHG, where he works across the company's practice areas to analyze the impact of policy proposals and structural developments on specific markets and broader economic trends. Prior to RHG, he worked with Columbia University s Earth Institute and the World Bank to design an electricity expansion model for Kenya and Senegal and was a program assistant at the South Asia Institute. He holds an MPA from the School of International and Public Affairs at Columbia University and is a graduate of the Indian Institute of Technology (IIT) Kharagpur.