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Fracking: Should Controversial Natural Gas Production Methods Be Authorised?

Martin Faulstich, Mechthild Baron, Walter Frenz, Hans-Joachim Kümpel, Matthias Knauff, Leon Leschus, Sven Schulze
ifo Institut, München, 2015

ifo Schnelldienst, 2015, 68, Nr. 01, 07-21

Should controversial fracking methods be authorised for commercial use in Germany? Martin Faulstich and Mechthild Baron, German Advisory Council on the Environment, come to the conclusion that fracking is not necessary from an energy policy point of view and can make no significant contribution to the energy turnaround. It should not be authorised commercially at the present time due to a serious knowledge gap about its implications. Walter Frenz, Rheinisch-Westfälischen Technischen Hochschule Aachen, notes that, from a legal viewpoint, a suitable proposal for an amendment of the law, and especially of the Water Resources Act, that would cover the opportunities and risks of fracking, already exists. Matthias Knauff, University of Jena, shows that the legislator is not entirely free to make decisions in this case. If existing environmental protection standards are to be respected, fracking is a constitutionally protected activity that cannot be prohibited for political reasons alone. However, the known and unknown risks that it entails could justify restrictions in line with the precautionary principle. In the opinion of Hans-Joachim Kümpel, German Federal Institute for Geo-Sciences and Raw Materials, fracking is a controllable technology, while Leon Leschus and Sven Schulze, Hamburgisches WeltWirtschaftsInstitut (HWWI), are sceptical about fracking for Germany on the whole.

JEL Classification: Q420, Q530, Q540, L950

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ifo Institut, München, 2015