New drilling techniques for oil and natural gas are propelling an energy production renaissance in the United States. As the US economy struggles to emerge from the Great Recession, many see the boom as a possible source of economic salvation that could reduce unemployment and revitalize American manufacturing. Until now, however, there has been little objective analysis of the energy boom's economic consequences. In this major study, Trevor Houser and Shashank Mohan fill that gap. They assess the impact of the recent and projected increase in domestic energy production on US GDP, employment growth, manufacturing competitiveness, household expenditures, and international trade balance. Alongside its economic impact, the American energy revolution is raising new environmental and trade policy questions. What are the consequences for the environment and global warming of increased domestic oil and gas production? Should companies be allowed to export the energy they produce or will doing so undermine American manufacturing competitiveness? Houser and Mohan provide independent research and analysis that will help policymakers navigate these issues.
Selected chapters and sections are provided for preview only.
1. Introduction [pdf]
2. The Dark before the Dawn
3. An Oil and Gas Renaissance [pdf]
4. Economic Impact [pdf]
5. Demand Side of the Ledger
6. Regional and Sectoral Consequences
7. Environmental Costs and Benefits [pdf]
8. Trade Policy Considerations
Appendix A Modeling Framework and Assumptions