Natural gas drilling using a controversial technique known as hydraulic fracturing could create up to 37,000 jobs and generate from $31 million to $185 million a year in added state income taxes for New York at the peak level of well development, according to analyses in a report commissioned by the New York State Department of Environmental Conservation that was released on Wednesday.

But communities in south-central and southwestern New York, on or near the Marcellus Shale, where most new drilling is expected, would pay a price for the local economic bonanza.

Included among the negative impacts the report outlines are large-scale industrial activity, heavy truck traffic, more spending on police and fire protection and higher housing prices due to the expected influx of workers.

The report was contracted to Ecology and Environment, a New York environmental engineering consulting firm that counts among its clients both the state government and private oil and gas companies. The report now becomes part of the broader draft document by which New York environmental regulators identify risks and propose rules to allow hydraulic fracturing with horizontal drilling, for the first time in the state.