Understanding Local Regulation of Hydro-Fracking: A Spatial Econometric Approach

The fracturing of underground shale gas deposits to capture natural gas, is a controversial practice. We use a comprehensive dataset on local bans and endorsements in New York State, together with local-level census data, and spatial characteristics, linked through GIS, to undertake a spatial econometric analysis of local fracking policies in New York. Results suggest a community’s presence in the Utica shale region, the relative leaning of the community to the Democratic Party, and the education level of the local population increase the probability of a ban. Alternately, the degree of local land development, location in highly productive areas of the Marcellus, the number of extant oil and gas wells, presence in priority drinking-water watersheds, and the percentage of wetlands all have a negative impact on the likelihood of a ban or moratorium. We also find spillover effects across communities.