Real Estate Value Impacts from Fracking: Industry Response and Proper Analytical Techniques

Real Estate Issues 39(3), 2014, 6-20

23 Pages Posted: 11 Nov 2015

See all articles by Richard Roddewig

Richard Roddewig

Clarion Associates, Inc

Rebel A. Cole

Florida Atlantic University

Date Written: December 1, 2014

Abstract

In this article, we discuss how fracking can affect housing prices in both positive and negative ways. We then critique several recent papers that use hedonic regression to analyze the effect of fracking on house prices and conclude that fracking has an unambiguously negative affect on housing prices. We identify serious methodological problems and data shortcomings in these studies; and discuss how to correct these problems and shortcomings. We conclude that much more research into the effects of fracking on real estate prices and values is needed before this issue is resolved.

Keywords: ]appraisal, fracking, hedonic regression, horizontal fracturing, housing prices

JEL Classification: C23, D62, G18, Q38, Q42, R31, R52

Suggested Citation

Roddewig, Richard and Cole, Rebel A., Real Estate Value Impacts from Fracking: Industry Response and Proper Analytical Techniques (December 1, 2014). Real Estate Issues 39(3), 2014, 6-20. Available at SSRN: https://ssrn.com/abstract=2688724

Richard Roddewig

Clarion Associates, Inc ( email )

Chicago, IL
United States

Rebel A. Cole (Contact Author)

Florida Atlantic University ( email )

College of Business
777 Glades Road
Boca Raton, FL 33431
United States
1-561-297-4969 (Phone)

HOME PAGE: http://rebelcole.com

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