Sector Effects of the Shale Gas Revolution in the United States
Resources for the Future DP 13-21
58 Pages Posted: 20 Jul 2013
Date Written: July 19, 2013
This paper reviews the impact of the shale gas revolution on the sectors of electricity generation, transportation, and manufacturing in the United States. Natural gas is being substituted for other fuels, particularly coal, in electricity generation, resulting in lower greenhouse gas emissions from this sector. The use of natural gas in the transportation sector is currently negligible but is projected to increase with investments in refueling infrastructure and natural gas vehicle technologies. Petrochemical and other manufacturing industries have responded to lower natural gas prices by investing in domestically located manufacturing projects. This paper also speculates on the impact of a possible shale gas boom in China.
Keywords: shale gas, electricity, transportation, manufacturing
JEL Classification: L71, L9, Q4
Suggested Citation: Suggested Citation