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

See all articles by Lucija Muehlenbachs

Lucija Muehlenbachs

Resources for the Future; University of Calgary

Elisheba Spiller

Environmental Defense Fund

Christopher Timmins

Duke University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 13, 2015

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.

Keywords: shale gas, groundwater, property values, hedonic models, nearest neighbor matching, differences-in-differences, triple differences

JEL Classification: Q32, Q33, Q50, Q53

Suggested Citation

Muehlenbachs, Lucija and Spiller, Elisheba and Timmins, Christopher D., The Housing Market Impacts of Shale Gas Development (July 13, 2015). Resources for the Future Discussion Paper No. 13-39-REV2. Available at SSRN: https://ssrn.com/abstract=2374481 or http://dx.doi.org/10.2139/ssrn.2374481

Lucija Muehlenbachs (Contact Author)

Resources for the Future ( email )

Washington, DC 20036
United States

University of Calgary ( email )

University Drive
Calgary, Alberta T2N 1N4
Canada

Elisheba Spiller

Environmental Defense Fund ( email )

257 Park Avenue South
New York, NY 10010
United States

Christopher D. Timmins

Duke University - Department of Economics ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States
919-660-1809 (Phone)
919-684-8974 (Fax)

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