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Shale gas transmission and housing prices

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  • Boslett, Andrew
  • Hill, Elaine

Abstract

In this study, we exploit residential property sales data in New York to value the external environmental costs of the proposed Constitution Pipeline, a high-capacity transmission pipeline designed to transport hydraulically-fractured natural gas in Pennsylvania to large northeastern markets. Results from difference-in-differences models suggest post-announcement price declines of 9% (∼$12,000) for those properties located within three kilometers of the pipeline. These results are strongly robust to different specifications and subsets of the data, as well as falsification testing. Additionally, we find some evidence of attenuation in our treatment effect over time, which is indicative of either declining salience or expectations of the pipeline over time. Our results suggest that homebuyer expectations of the environmental externalities of natural gas pipeline construction and operations are large and negative.

Suggested Citation

  • Boslett, Andrew & Hill, Elaine, 2019. "Shale gas transmission and housing prices," Resource and Energy Economics, Elsevier, vol. 57(C), pages 36-50.
    • Handle: RePEc:eee:resene:v:57:y:2019:i:c:p:36-50
    DOI: 10.1016/j.reseneeco.2019.02.001
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    Cited by:

    1. Mei, Yingdan & Liu, Wenbo & Wang, Jianliang & Bentley, Yongmei, 2022. "Shale gas development and regional economic growth: Evidence from Fuling, China," Energy, Elsevier, vol. 239(PC).
    2. Lee, Brian & Wang, Szu-Yung & Lin, Tzu-Chin & Chang, Hung-Hao, 2021. "Underground pipeline explosions and housing prices: Quasi-experimental evidence from an urban city," Land Use Policy, Elsevier, vol. 111(C).
    3. Keeler, Zachary T. & Stephens, Heather M., 2020. "Valuing shale gas development in resource-dependent communities," Resources Policy, Elsevier, vol. 69(C).
    4. Xingchi Shen & Yueming Lucy Qiu & Pengfei Liu & Anand Patwardhan, 2022. "The Effect of Rebate and Loan Incentives on Residential Heat Pump Adoption: Evidence from North Carolina," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(3), pages 741-789, July.

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    More about this item

    Keywords

    Shale gas development; Natural gas transmission pipelines; Hedonic valuation;
    All these keywords.

    JEL classification:

    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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