Is the Shale Energy Boom a Bust for Nearby Residents? Evidence from Housing Values in Pennsylvania. (17th September 2013)

• Record Type: Journal Article
• Authors: Gopalakrishnan, Sathya; Klaiber, H. Allen
• Is Part Of: American journal of agricultural economics. Volume 96:Number 1(2014)
• Page Start: 43
• Page End: 66
• Publication Date: 2013-09-17
• Subjects: hedonic -- housing values -- risk -- shale gas; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Periodicals; 338.105
• DOI: 10.1093/ajae/aat065
• Languages: English
• ISSNs: 0002-9092

Abstract

Abstract: Profitable extraction of previously inaccessible shale energy reserves has led to the rapid expansion of shale exploration across the United States. We present one of the first empirical studies to measure the impact of early shale exploration on surrounding homeowners using data from Washington County, Pennsylvania, from 2008 to mid 2010. We find that property values are negatively impacted by shale gas exploration activity, but this impact depends on the proximity and intensity of shale activity and is largely transitory. The negative effects are larger for households located close to major highways and sourced with private well water.