The Housing Market Impacts of Wastewater Injection Induced Seismicity Risk
43 Pages Posted: 15 May 2017 Last revised: 16 May 2017
Date Written: February 16, 2017
Using data from Oklahoma County, an area severely affected by the increased seismicity associated with injection wells, we recover hedonic estimates of property value impacts from nearby shale oil and gas development that vary with earthquake risk exposure. Results suggest that the 2011 Oklahoma earthquake in Prague, OK, and generally, earthquakes happening in the county and the state have enhanced the perception of risks associated with wastewater injection but not shale gas production. This risk perception is driven by injection wells within 2 km of the properties.
Keywords: Earthquake, Wastewater Injection, Oil and Gas Production, Housing Market, Oklahoma
JEL Classification: L71, Q35, Q54, R31
Suggested Citation: Suggested Citation