The Impact of the Presence of a Natural Gas Pipeline on Residential Property Values

Abstract

A recent LNG terminal building boom has, in turn, produced a natural gas pipeline building boom. Some property owners have expressed concern that a pipeline would reduce the values of nearby properties. This study uses the hedonic housing price approach to estimate the impacts of pipeline. The study finds that proximity to a natural gas pipeline has no statistically or economically significant impact on residential property values. These results are consistent with previous published research and suggest that the positive amenity potential associated with pipeline proximity exceed and perceived costs associated with potential safety or environmental risks.

Keywords: pipeline, residential, property value, hedonic, regression