Employment Booms and Busts Stemming from Nonrenewable Resource Extraction

Christopher Jeffords, Alexi Thompson and David Yerger
Additional contact information
Alexi Thompson: Department of Economics, Indiana University of Pennsylvania, USA,

International Journal of Energy Economics and Policy, 2015, vol. 5, issue 3, 809-815

Abstract: A non-renewable resource extraction model is embedded within a lake model of industry-specific employment, where flows to (from) employment from (to) unemployment depend on the attachment (separation) rate. The attachment and separation rates vary with resource extraction, and the results, driven by the rate of extraction and the remaining resource stock, indicate that changes in the stationary employment level can be positive, negative, or zero. There is a range where the separation rate is decreasing (increasing) and the attachment rate is increasing (decreasing), and the change in employment is determined by the combined effect of these changes. Using data on coal production and employment in the US as a guide, simple calculations provide a range of years beyond 2013 when it is expected that peak employment will be reached in the Marcellus Shale, and the results suggest that employment gains will likely continue for at least a decade.

Keywords: Marcellus Shale; Shale Gas; Nonrenewable Resource; Employment; Lake Model (search for similar items in EconPapers)
JEL-codes: Q32 Q33 Q47 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.econjournals.com/index.php/ijeep/article/download/1291/796 (application/pdf)
http://www.econjournals.com/index.php/ijeep/article/view/1291/796 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2015-03-23

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().