Effects of green energy development on population growth and employment: Evidence from shale gas exploitation in Chongqing, China

Abstract

With the maturity of horizontal drilling and hydraulic fracturing technologies, countries rich in shale gas have begun to promote the development of the shale gas industry. The impact of the booming shale gas industry on the regional economy has also become a main focus. Shale gas’ exploration and extraction may have positive spillover effects on other sectors, resulting in population growth and job creation. However, negative spillover effects can occur through rising local goods prices and its adverse effects on the local quality of life, which in turn could harm population growth and employment. By using the synthetic control method, we investigates the shale gas fields in Chongqing to reveal the relationship between population growth, employment and shale gas development in Fuling, Nanchuan and Wulong districts. Our results indicate that due to the development of the shale gas industry, the number of urban non-private sector employees in three districts and counties has decreased. From 2017 to 2018, this decline had gradually weakened and the population growth had been negatively affected.

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