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NEW The Efficient Allocation of Rural Land in Upstate New York READ HERE

Back in the mid-1980s, I attended Hamilton College. I would take the Amtrak train from Westchester to Utica and as the train traveled North and West, I would see decaying manufacturing towns in upstate New York (think Schenectady --- whose population has declined by 25% over the last 60 years) and farmland.   At the time, I wondered about why so much space was offering so little value to the U.S economy.  Flash forward to today and I just read this great WSJ opinon piece by Fred Siegel.  For economists who teach environmental or urban economics, this is a great teaching tool.  Siegel tells a story of conflicting visions for how upstate NY land should be allocated.  

On the one hand are the "liberal NYC landed gentry" who live in Manhattan and have bought large 2nd homes in upstate New York (i.e people such as Sean Eldridge profiled in this story).  Siegel tells a story of how these land owners have formed a coalition with liberal university students and faculty at upstate NY universities to oppose fracking activity.    Is upper New York State a place where produce things (besides for apples)?  Or is it a place for the rich to retreat to for serenity?

In contrast, there are pro-fracking land owners in upstate New York who tend to be poorer and more conservative.  So, should we ask Joni Mitchell?  What is the right balance between preserving versus using land?  If there are cross-parcel externalities associated with fracking, what safeguards should be built in to protect the property rights of land owners who choose to not lease their parcels for fracking?   Could the frackers post a bond?  Could their be random audits to see if fracking equipment safety protocols are being followed?

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