Housing Market Capitalization of Pipeline Risk: Evidence From the San Bruno Explosion

29 Pages Posted: 18 Aug 2018

See all articles by Evan Herrnstadt

Evan Herrnstadt

Compass Lexecon

Richard Sweeney

Boston College - Department of Economics

Date Written: July 16, 2018

Abstract

Stated safety concerns are a major impediment to making necessary expansions to the natural gas pipeline network. While revealed willingness to pay to avoid existing natural gas pipelines appears small, it is difficult to know if this reflects true ambivalence or a lack of salience and awareness. We test this latter hypothesis by studying how house prices responded to a deadly 2010 pipeline explosion in San Bruno, CA, which shocked both attention and information. Using multiple identification strategies, we fail to find any evidence of a meaningful shift in the hedonic price gradient around pipelines following these events.

Keywords: Hedonic, Pipeline, Safety, Information Disclosure

JEL Classification: Q4, Q5, Q51, R21

Suggested Citation

Herrnstadt, Evan and Sweeney, Richard, Housing Market Capitalization of Pipeline Risk: Evidence From the San Bruno Explosion (July 16, 2018). Available at SSRN: https://ssrn.com/abstract=3226599 or http://dx.doi.org/10.2139/ssrn.3226599

Evan Herrnstadt

Compass Lexecon ( email )

United States

HOME PAGE: http://www.evanherrnstadt.com

Richard Sweeney (Contact Author)

Boston College - Department of Economics ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
6
Abstract Views
91
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information