As an increasing number of Front Range communities place restrictions on hydraulic fracturing, from the University of Colorado Leeds School of Business examines the possible economic impacts of a statewide ban on the practice.
The analysis estimates that over the first five years, there would be a loss of 68,000 jobs 鈥� or a 1.9 percent decrease 鈥� and an average $8 billion lower gross domestic product, resulting in a 2.3 percent drop.
Over 25 years, the analysis found the statewide ban would cut 93,000 jobs, trimming $12 billion from gross domestic product.
The study was commissioned by a consortium of groups including the Metro Denver Economic Development Corp. When CU researchers began their analysis in late 2013, Research Associate Brian Lewandowski says there was talk of a statewide fracking ban.
"The analysis estimates that over the first five years, there would be a loss of 68,000 jobs."
鈥淪o the thought last November or December was that we were likely to see a statewide ballot initiative in 2014. So we decided to model out what the economic implications would be of a statewide fracking ban, not knowing what the language would shape up to be,鈥� Lewandowski said.
Critics of fracking say the report fails to examine the larger societal issues of using fuels where the environment and health are concerned.
A statewide fracking ban seems less likely now that ballot issues aimed at giving communities more local control .
鈥淲hat we would like to do as a policy group is to study these other scenarios,鈥� said Lewandowski, who expects to research the economic impacts of those proposals in the coming months.
