Employment Creation of Shale Gas Investment in China

Abstract

An ambitious shale gas extraction plan has been proposed. The huge investment of shale gas may put an effect on the whole China’s economy, especially for employment. However, there is few study to date has quantified these effects. The aim of this paper is to quantify these effects especially employment creation and figures out whether shale gas investment in China is a good choice or not. Input-output analysis has been utilized in this study to estimate the employment creation in four different Chinese regions. Our findings show that shale gas investment will result in creating 660000, 370000, 140000 and 58000 equivalent jobs in Sichuan, Chongqing, Inner Mongolia and Guizhou, respectively. Considering the potential risks of environmental issues, we suggest that it may be a better strategy for the government, at least in the current situation, to slow down shale gas development investment.