The relationship between shale gas development and budgetary and microeconomic externalities was studied. The extraction activity in the Barnett shaleformation provided a case study for assessing per-well highway infrastructure damage and water usage. The creation of a predictive model based upon the Barnett was applied to the Marcellus formation. The results showed support for the hypothesis that shale gas development creates negative externalities that amount to unfunded mandates and freerider problems for states and localities. Implications and policy solutions, including the case for a Pennsylvania natural gas fund, are discussed. / McAnulty College and Graduate School of Liberal Arts; / Graduate Center for Social and Public Policy / MA; / Thesis;

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