Pipeline Incidents and Property Values: A Nationwide Hedonic Analysis

35 Pages Posted: 21 May 2022

See all articles by Nieyan Cheng

Nieyan Cheng

Iowa State University

Minghao Li

New Mexico State University

Pengfei Liu

University of Rhode Island - Department of Environmental and Natural Resource Economics

Qianfeng Luo

Chinese Academy of Sciences (CAS)

Chuan Tang

Huazhong Agricultural University - College of Economics and Management

Wendong Zhang

Department of Economics, Iowa State University; Center for Agricultural and Rural Development, Iowa State University

Abstract

Economic impacts of energy infrastructure incidents have been a focus of attention, especially since the rapid pipeline expansion due to the domestic shale oil and gas boom. While previous studies focus on individual pipeline incidents, we provide the first nationwide assessment of pipeline incidents’ impacts on housing prices using data from 864 gas distribution pipeline incidents and 17 million property transactions from 2010 to 2020. A difference-in-differences analysis finds that a pipeline incident decreases housing prices by 4% -- 6% on average. We explore the heterogeneous impacts of incidents with different characteristics. These heterogeneous impacts can potentially explain conflicting results from previous studies.

Keywords: Pipeline, Hazardous Materials, Housing Values, Hedonics, Difference-in-differences

Suggested Citation

Cheng, Nieyan and Li, Minghao and Liu, Pengfei and Luo, Qianfeng and Tang, Chuan and Zhang, Wendong, Pipeline Incidents and Property Values: A Nationwide Hedonic Analysis. Available at SSRN: https://ssrn.com/abstract=4116305 or http://dx.doi.org/10.2139/ssrn.4116305

Nieyan Cheng

Iowa State University ( email )

613 Wallace Road
Ames, IA 50011-2063
United States

Minghao Li

New Mexico State University ( email )

College of Business
Las Cruces, NM 88003
United States

Pengfei Liu

University of Rhode Island - Department of Environmental and Natural Resource Economics ( email )

Kingston, RI 02881
United States

Qianfeng Luo

Chinese Academy of Sciences (CAS) ( email )

Chinese Academy of Sciences
Beijing, 100190
China

Chuan Tang (Contact Author)

Huazhong Agricultural University - College of Economics and Management ( email )

Wuhan, Hubei 430070
China

Wendong Zhang

Department of Economics, Iowa State University ( email )

260 Heady Hall
Ames, IA 50011
United States

HOME PAGE: http://https://www2.econ.iastate.edu/faculty/zhang/

Center for Agricultural and Rural Development, Iowa State University ( email )

578 Heady Hall
Ames, IA 50011
United States
50011 (Fax)

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