A social cost-benefit analysis of Dutch natural gas extraction

Abstract

This thesis describes the contribution of natural gas extraction in the Netherlands to social welfare. Natural gas extraction in the Netherlands has encountered backlash from inhabitants of the extraction region, while it is an industry from which the Dutch society seems to benefit enormously due to the government obtaining a large part of the revenues. Reports that evaluate natural gas extraction focus only on the direct costs and benefits. An ex post Social Cost-Benefit Analysis is conducted to gain insights on the contribution of natural gas extraction to the society, of the direct and indirect effects caused by extracting natural gas. This overview makes it possible to answer questions that are left open with ordinary cost benefit analysis, with special concerns for the redistributive effects of the Dutch natural gas extraction.