Providing tax breaks to the frackers can be justified by the government as a way of trying to develop an industry that could eventually provide Britain with lower-cost and lower-carbon energy – if all goes fantastically well.
In the US, the shale "revolution" has cut natural gas prices by almost 75% and allowed a reduction in carbon emissions as gas has displaced coal in the generation of electricity.
But that coal has been exported to Britain and Germany to be burned over here. A new domestic source of gas could allow Britain to cut coal use, but would that send heavier CO2 emissions elsewhere?
There are many potential side issues around shale – such as methane leaks, earthquakes and water contamination – but the real concern is that fiscal support feeds into a short-termist agenda in some political and business circles that tackling climate change through wind power or energy efficiency costs too much and should be shelved.
