Shale gas and regional economic development: Enhancing local economic impact

Abstract

The expansion of shale gas extraction has been supported by the UK national government because of predicted economic benefits. However, what is largely missing from this analysis is an estimation of local and regional economic impact. This paper seeks to contribute to the deliberations of local stakeholders by outlining current estimates of local multiplier effects and indicating where policy initiatives could be targeted to maximise local economy benefit. The advocates a reorientation of public policy support for the shale gas industry to focus upon the development of educational partnerships, enhancing skills development and attracting inward investment through spillover effects, thereby enhancing local economic impact.