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Resource Boom to Revitalization: the Local Economic Planning and Governance Implications of Fracking in Northern Appalachia

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Resource Boom to Revitalization: the Local Economic Planning and Governance Implications of Fracking in Northern Appalachia Resource Boom to Revitalization: The Local Economic Planning and Governance Implications of Fracking in Northern Appalachia by Austin Lewis Zwick A thesis submitted in conformity with the requirements for the degree of Doctor of Philosophy Department of Geography and Planning University of Toronto © Copyright by Austin Lewis Zwick 2018 Resource Boom to Revitalization: The Local Economic Planning and Governance Implications of Fracking in Northern Appalachia Austin Lewis Zwick Doctor of Philosophy Department of Geography and Planning University of Toronto 2018 Abstract Small cities in Appalachia have been battling an ongoing struggle against economic decline for decades, but now some find themselves amidst a new natural resource boom. The technological innovation of hydraulic fracturing drilling, commonly known as ‘fracking’, has revolutionized global energy markets overnight, leaving a gap of understanding about its local implications in the process. Most early research focused on documenting the environmental risks of fracking, but little work has gone into understanding its local economic and planning impacts. Promises of economic growth and blue-collar jobs give hope to this declining region, but resource extraction municipalities often struggle with inadequate fiscal and administrative capacity to deal with the environmental and infrastructure externalities caused by the industry. As municipalities grapple with these challenges, the ‘boom-bust cycle’ may become reflected on their balance sheets, putting their fiscal health at risk. What are the local economic planning and governance implications of the fracking boom in Northern Appalachia? Additionally, because of the newness of fracking, this specific industry in this specific region offers a rare opportunity to study the impact the introduction of natural resource development impacts local economic resilience. My doctoral dissertation offers a unique theoretical ii contribution, as tension in literature exists on whether contemporary extractions industries positively or negatively impact diversification. It also offers a practical contribution, considering that little research exists on job estimates and governance issues that arise with fracking. Each chapter of this dissertation, intended to be independent academic works with their own literature reviews and methods, contributes to our understanding through: (Chapter 1) introducing the geography of the region, (Chapter 2) overviewing the economic history of Northern Appalachia; (Chapter 3) testing changes in economic diversity indices; (Chapter 4) investigating migration, housing, and employment patterns; and (Chapter 5) surveying local planners about regulatory responses. Finally, my dissertation concludes with a review of findings and a brief set of policy recommendations. The goal of this research is to provide information that helps small cities best plan and manage the fracking boom; finding that the industry is not dramatically altering patterns of long-term decline in Appalachia. iii Acknowledgments To the people who guided me through my life; the ones who I could not have done this without. First, my PhD supervisor Jason Hackworth who always gave great advice and continually pushed me to keep writing. The thoroughness of his work continues to inspire me. John Miron who always pointed me to the canonical writings in regional science. John’s wisdom is timeless and his unending curiosity inspires me. Amrita Daniere, whose supportiveness of my undertakings built confidence in me to keep pushing forward. She is a role model of the professor I’d like to be. Enid Slack’s advice and comments on the public finance and governance sections really improved my understanding. The doors she opened for me and the personal connections she helped me make are priceless. Prior to entering my PhD program, the mentorship provided by Susan Christopherson during my masters’ degree, and Kate Bronfenbrenner during my undergraduate, deeply shaped me into the scholar that I am today. My early experiences of being guided by scholars with such a passion for research made me want to follow in their footsteps. Finally, I’d like to thank my wonderful wife Maria Pontikis without whose love and endless support I would have never ventured – or completed – this endeavor. There are several organizations I’d like to thank for their generous support of my dissertation process. Thank you to the Munk School’s Centre for Study of the United States (CSUS) and Institute of Municipal Finance and Governance (IMFG) for generous funding and providing forums for thoughtful feedback. Thank you to the Regional Studies Association (RSA), American Collegiate Schools of Planning (ACSP), University of Toronto Graduate Students’ Union (GSU), University of Toronto’s School of Graduate Studies (SGS), and my home department for providing funds to help me travel for purposes of field research and conferences. These experiences were invaluable. Finally, thank you to the Lincoln Institute of Land Policy and University of Toronto’s Department of Geography and Planning for their generous funding that bought me time (and data) to complete my dissertation. iv Table of Contents Acknowledgments.......................................................................................................................... iv Table of Contents .............................................................................................................................v List of Tables ............................................................................................................................... viii List of Figures ................................................................................................................................ ix List of Appendices ...........................................................................................................................x Chapter 1 Introduction: Northern Appalachia: Stuck in the Middle of Somewhere .......................1 1.1 Chapter Introduction .................................................................................................................1 1.2 Geography: Places, People, and Well-sites ..............................................................................4 1.2.1 Places ..................................................................................................................................4 1.2.3 Sub-regions ........................................................................................................................14 1.2.4 Well-sites ...........................................................................................................................18 1.3 Identity and Politics: Coal to Fracking ...................................................................................22 1.4 Outline of Dissertation ............................................................................................................26 1.5 Limitations ..............................................................................................................................32 1.6 Autobiographical Arc .............................................................................................................34 1.7 Chapter Conclusion ................................................................................................................38 Chapter 2 The Economic History of Northern Appalachia: From Furs to Fracking with Coal Everywhere In-Between ............................................................................................................40 2.1 Chapter Introduction ...............................................................................................................40 2.2 Economic History: Freedom, Farming, and Coal ...................................................................41 2.3 Appalachian Regional Commission .......................................................................................55 2.4 Operations of the Fracking Industry .......................................................................................60 2.5 Comparing the Coal Industry to the Fracking Industry ..........................................................67 v 2.6 The Exception that Proves the Rule: Collegetowns .........................................................73 2.7 Chapter Conclusion ................................................................................................................76 Chapter 3 Testing the Local Natural Resource Curse Hypothesis: A Case Study of Fracking in Northern Appalachia .............................................................................................................80 3.1 Chapter Introduction ...............................................................................................................80 3.2 Literature Review ...................................................................................................................83 3.2.1 Negative Hysteresis ...........................................................................................................83 3.2.2 Positive Hysteresis .............................................................................................................86 3.3 Methods ..................................................................................................................................88 3.3.1 The Resilience Framework ................................................................................................88 3.3.2 Data
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