Houser and Mohan here analyze the economic implications of the recent technological boom in oil and natural gas drilling in the US, intended to guide policymakers in wise decision-making. After an overview of politics and economics pertaining to energy supply from the 1970s to the early 2010s, the authors summarize the technological basis of the domestic energy renaissance. A number of economics impacts are then addressed sequentially. First, a generalized macroeconomic analysis is provided, including assessment of stimulus potential, effects on trade and exchange, and long-term sequelae. Demand-side effects are discussed specifically, as well as differential benefits for different regions of the country and sectors of the economy. Two detailed chapters address the impact on the environment and considerations for navigating trade policy. In particular, the potential for cheaper domestic energy to lessen resistance to environmentally-based taxes and restrictions is discussed. An appendix lays out the models and assumptions used. Annotation 2014 Ringgold, Inc., Portland, OR (protoview.com)
