The Housing Market Impacts of Shale Gas Development

49 Pages Posted: 10 Jan 2014 Last revised: 5 Aug 2021

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: January 2014

Abstract

Using data from Pennsylvania and New York and an array of empirical techniques to control for confounding factors, we recover hedonic estimates of property value impacts from shale gas development that vary with geographic scale, 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. At a broader geographic scale, we find that new wellbores increase property values, but these effects diminish over time. Undrilled permits cause property values to decrease. Results have implications for the debate over regulation of shale gas development.

Suggested Citation

Muehlenbachs, Lucija and Spiller, Elisheba and Timmins, Christopher D., The Housing Market Impacts of Shale Gas Development (January 2014). NBER Working Paper No. w19796, Available at SSRN: https://ssrn.com/abstract=2377133

Lucija Muehlenbachs (Contact Author)

Resources for the Future ( email )

Washington, DC 20036
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University of Calgary ( email )

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Elisheba Spiller

Environmental Defense Fund ( email )

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Christopher D. Timmins

Duke University - Department of Economics ( email )

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