American Economic Review Vol. 105 No. 12 2015

The Housing Market Impacts of Shale Gas Development

Lucija Muehlenbachs¹; Elisheba Spiller²; Christopher Timmins³

¹ Department of Economics, University of Calgary, 2500 University Drive NW, Calgary, Alberta, Canada T2N 1N4, and Resources for the Future (e-mail: ) · ² Environmental Defense Fund, 257 Park Avenue South, New York, NY 10010 (e-mail: ) · ³ Department of Economics, Duke University, 213 Social Sciences Building, 419 Chapel Drive, Box 90097, Durham, NC 27708 (e-mail: )

Abstract

Using data from Pennsylvania and an array of empirical techniques to control for confounding factors, we recover hedonic estimates of property value impacts from nearby shale gas development that vary with water source, well productivity, and visibility. Results indicate large negative impacts on nearby groundwater-dependent homes, while piped-water-dependent homes exhibit smaller positive impacts, suggesting benefits from lease payments. Results have implications for the debate over regulation of shale gas development.

DOI

10.1257/aer.20140079

Volume

105

Issue

12

Pages

3633-3659

Language

en

Sources

openalex bibtex:phds-export.bib crossref

Cite

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