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Geography, Geology, and Regional Economic Development

Author

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  • Berry, Kevin
  • James, Alexander
  • Smith, Brock
  • Watson, Brett
Abstract
We examine how large and localized resource discoveries affect long-run population growth in the United States, and examine how these shocks interact with pre-existing geographic properties of the discovery site. Using a dynamic event study analysis and developing novel, geographically delineated measures of both amenity value and geographic isolation, we find that resource discoveries cause population to grow both in the short and long-run (e.g., fifty years). However, this effect is largely driven by discoveries in unfavorable locations that might struggle to grow in the absence of a resource discovery. More generally, this paper highlights the importance of considering heterogeneous effects of resource shocks and yields insights into the observed spatial distribution of people in the United States.

Suggested Citation

  • Berry, Kevin & James, Alexander & Smith, Brock & Watson, Brett, 2022. "Geography, Geology, and Regional Economic Development," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:jeeman:v:115:y:2022:i:c:s0095069622000742
    DOI: 10.1016/j.jeem.2022.102715
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    References listed on IDEAS

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    Cited by:

    1. Kirat, Yassine, 2021. "The US shale gas revolution: An opportunity for the US manufacturing sector?," International Economics, Elsevier, vol. 167(C), pages 59-77.
    2. Katovich, Erik S., 2024. "Winning and losing the resource lottery: Governance after uncertain oil discoveries," Journal of Development Economics, Elsevier, vol. 166(C).
    3. Yassine Kirat, 2021. "The US shale gas revolution: An opportunity for the US manufacturing sector?," Post-Print hal-03676616, HAL.

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    More about this item

    Keywords

    Natural-resource discoveries; Regional development; Long-run population growth; Geography; Environmental amenities;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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