
Environmental Risk and Uncertainty
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gas prices (and decline in the relative gas-coal price) by dispatching more electricity
from gas plants that resulted in lower carbon dioxide (CO
2
) emissions and the lowest
share of U.S. power generation by coal in some four decades (Aldy, 2012). While this
expansion of shale gas has changed the U.S. power market, it has also affected many of
the local communities where production takes place, including impacts on local labor
markets, infrastructure, and air and water quality.
Volatile energy prices may inhibit energy-related innovation, but higher prices typi-
cally induce innovation. Empirical evaluations ...