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Kharkiv region is a leader in industrial gas production, and the industry has long-term potential for significant growth. Recently, many discussions have been held on the unconventional gas development and the related economic boom.
However, are these assumptions reasonable? What is the socio-economic effects of unconventional gas exploration? Is the involvement of local companies as subcontractors possible? How many jobs will be created?
The first such study in Ukraine deals with the social and economic benefits of unconventional gas development on the regional level and provides answers to these and other questions.
The research was done by the international group of scientists and experts from the U.S. and Ukraine, including DiXi Group experts, Dr. Iryna Lendel, the Assistant Director of the Centre for Economic Development at the College of Urban Affairs at Cleveland State University, and Vitaliy Fylenko, the Chairman of the Board at Nova Energiya NGO (Kharkiv).
The project team has explored available databases of public authorities and their territorial offices in Kharkiv region concerning social and economic component; analyzed media reports related to unconventional gas development or associated activities. Also, experts applied best practices of economic analysis used at the level of U.S. states (input-output models), having adapted them to Ukrainian reality.
Among its key objectives - strengthening public awareness of potential social and economic impact of unconventional gas development in the region, introducing best experience and practices related to assessment and measurement of these effects.
The study was produced under the project “Strengthening public support for the development of unconventional gas as a component of economic reforms” implemented in the framework of the Ukrainian Unconventional Gas Institute program with Shell Exploration and Production Ukraine Investments (IV) B.V. and the British Council in Ukraine acting as partners.