Economics

The economic impact of frac sand mining entails both positive and negative dimensions, raising complicated questions for citizens and decision makers concerned about public well-being and about planning for long-term, sustainable development. The discussion about economic impacts is further clouded by the lack of independent, reliable data on non-metallic mining in this part of the country, and by vocal but narrow claims about "job creation," claims which often entail inflated promises of jobs and economic growth.

Here are some resources which address the economics of frac sand mining in Wisconsin and Minnesota. Some research publications addressing the wider socio-economic dimensions of mining, hydrofracking, and energy production are listed in the bibliographies section of this blog.

UW-Extension Fact Sheets on the Economics of Frac Sand Mining 

• Economic Multipliers - Do economic benefits associated with mining have a ripple effect throughout the local economy? Under what circumstances does money "escape" or "leak" out of the economy? 
• Stability of Mining as an Industry - Economic activity generated around natural resource extraction is notoriously unstable. How does this relate to frac sand mining and long-term economic development?
• Who takes the jobs? - Where do the employees for added jobs come from? Is there an adequate labor pool? Will labor commute from other locations to the frac sand operation? Will they relocate and live near the operation? How does this affect the ability of a local economy to capture and retain economic benefits? 
• What does the research indicate? - What does existing research on the impacts of mining on local communities tell us? 

Independent Research Reports

• Deller, Steven and Andrew Schreiber. 2012 (May). Frac Sand Mining and Community Economic Development. Staff Paper No. 565. Department of Agricultural and Applied Economics, University of Wisconsin-Stout. 
• Duley, Carl and Steven Deller. (no date). The Economics of Sand Mining and Buffalo County. University of Wisconsin-Extension. Unpublished report and an  Executive Summary submitted to the Buffalo County Board.

WI Farmers Union, WI Towns Association, & Institute for Agriculture and Trade Policy - Reports

• Power, Thomas Michael and Donovan S. Power. 2013 (May). The Economic Benefits and Costs of Frac-Sand Mining in West Central Wisconsin. Power Consulting, Inc. 

News Reports

• Davies, Phil. 2012. Sand Surge. FedGazette: Regional Business and Economics Newspaper, July.
• Kennedy, Tony. 2013. Good jobs hang in the balance of Minnesota's frac sand debate. StarTribune, March 25. 
• Prengaman, Kate. 2012. As supply meets demand, Wisconsin's frac sand rush slows. Wisconsin Center for Investigative Journalism, December 15.
• Prengaman, Kate. 2012. Frac sand boom creates thousands of jobs. Wisconsin Center for Investigative Journalism, August 19.

To generate support for their operations, frac sand companies have distributed t-shirts.
Photo by the Wisconsin Center for Investigative Journalism,
June 14, 2012, Buffalo County Board Meeting.