%0 Report %A Johnsen, Reid %A LaRiviere, Jacob %A Wolff, Hendrik %T Estimating Indirect Benefits: Fracking, Coal and Air Pollution %D 2016 %8 2016 Aug %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 10170 %U https://www.iza.org/publications/dp10170 %X This paper estimates indirect benefits of improved air quality induced by hydraulic fracturing, or "fracking". The recent increase in natural gas supply led to displacement of coal-fired electricity by cleaner natural gas-fired generation. Using detailed spatial panel data comprising the near universe of US power plants, we find that coal generation decreased by 28%. Further, fracking decreased local air pollution by an average of 4%. We show that benefits vary geographically; air pollution levels decreased by 35% in the most affected region. Back of the envelope calculations imply accumulated health benefits of roughly $17 billion annually. %K fracking %K coal-fired power plants %K air pollution %K health %K electricity