The Housing Market Impacts of Shale Gas Development
Resources for the Future Discussion Paper No. 13-39-REV2
53 Pages Posted: 4 Jan 2014 Last revised: 19 Aug 2015
Date Written: July 13, 2015
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.
Keywords: shale gas, groundwater, property values, hedonic models, nearest neighbor matching, differences-in-differences, triple differences
JEL Classification: Q32, Q33, Q50, Q53
Suggested Citation: Suggested Citation