Who governs local hydrocarbon development? Evidence from the Marcellus Shale in the United States

Given citizen concerns about damages that can accompany unconventional oil and gas development, some municipal governments have enacted zoning ordinances. Through a comparison of all municipalities to those with at least one oil or gas well, we examine factors that affect the adoption of local zoning laws by municipalities in Pennsylvania and find that lower educational levels, higher population densities, and higher incomes increase the likelihood of the municipalities endorsing zoning laws. A second analysis of spatial well data from the Pennsylvania Department of Environmental Protection provides insights on factors associated with a higher density of wells and points out that municipalities with county zoning have a higher well density. Through an examination of the numbers of unconventional and conventional well types in municipalities, we find that higher incomes and education are associated with more horizontal drilling.