A new report from The Heritage Foundation reveals that New York’s ban on hydraulic fracturing has cost residents approximately $27,000 per family annually in lost economic benefits. The study estimates that lifting the ban could have generated about $11,000 per capita in income, highlighting the significant economic impact of the state’s restrictive energy policies.
The Heritage Foundation report states:
“Analyzing economic data from 2002 to 2022 and comparing New York’s counties as the treatment group against comparable Pennsylvania counties as the control group, the authors estimate that New York’s ban resulted in the relevant New York counties losing out on around $11,000 per resident or $27,000 per household.“
Implemented in 2010 and reinforced in 2014 under then-Governor Andrew Cuomo, New York’s prohibition on hydraulic fracturing and horizontal drilling has prevented the state from tapping into the lucrative Marcellus Shale formation. In contrast, neighboring Pennsylvania has embraced natural gas development, leading to lower electricity costs and increased economic activity.
Diana Furchtgott-Roth, director of the Center for Energy, Climate, and Environment at The Heritage Foundation, emphasized the disparity: “Households above the Marcellus Shale in New York state are $27,000 poorer per year because hydrofracturing is banned, but they pay about 25% more in electricity costs than households in Pennsylvania.”
The report underscores the broader economic benefits of natural gas development, including job creation, increased tax revenues, and lower energy prices. It argues that states with policies supporting energy development are better positioned for economic growth and energy affordability.
As the national debate over energy policy continues, the findings from The Heritage Foundation suggest that revisiting fracking bans could offer substantial economic advantages for states like New York.
