Hydraulic fracturing, or fracking, provides the average local household with enormous economic benefits, according to a new study published Thursday by economists at the University of Chicago.
Driven by rises in wages and royalty payments, researchers found that fracking added a total of $1,200 to $1,900 per year for the average nearby household, causing a 6 percent increase in average income. The researchers also found that communities with fracking had a 10 percent increase in employment and a 6 percent increase in housing prices.
“This study makes it clear that on net there are benefits to local economies — which we believe is useful information for leaders in the United States and abroad who are deciding whether to allow fracking in their communities,” Chris Knittel, an economist who co-authored the study, said in a press statement.
Other research shown that fracking for oil and natural gas is most popular when locals see the economic benefits.