Validity of Studies on Economics of Shale Gas

The 2nd of July 2011 issue of new scientist reports that Thomas Kinnaman of Bucknel University in Lewisburg (PA) has examined six studies of the economics of shale gas extaction. Kinnaman reportedly "found that they all contain flaws that exagerated the benefits of shale gas extraction to local economies". Most of these studies also use a model called IMPLAN which makes significant oversiplifications such as assuming that local hotel rooms are going unused until the gas industry comes along.

Notes:
1)Kinnaman's study is published in Ecological Economics
2) Documentary about Shale Gas http://www.youtube.com/watch?v=dEB_Wwe-uBM

Home del.icio.us Digg This!