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Social costs from proximity to hydraulic fracturing in New York State

Author

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  • Popkin, Jennifer H.
  • Duke, Joshua M.
  • Borchers, Allison M.
  • Ilvento, Thomas

Abstract

The study reports data from an economic choice experiment to determine the likely welfare impacts of hydraulic fracturing, in this case using natural gas extracted by hydraulic fracturing for household electricity. Data were collected from an Internet survey of 515 residents of New York State. The welfare analysis indicated that on average households incur a welfare loss from in-state hydraulic fracturing as the source of their electricity. The evidence suggests that households in shale counties bear more costs from HF electricity than households out of shale counties. The average welfare loss is substantive, estimated at 40–46% of average household electric bills in shale counties and 16–20% of bills in counties without shale. The evidence also suggests that relative proximity to HF well sites also increases cost borne by households.

Suggested Citation

  • Popkin, Jennifer H. & Duke, Joshua M. & Borchers, Allison M. & Ilvento, Thomas, 2013. "Social costs from proximity to hydraulic fracturing in New York State," Energy Policy, Elsevier, vol. 62(C), pages 62-69.
  • Handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:62-69
    DOI: 10.1016/j.enpol.2013.07.080
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    Cited by:

    1. Jeremy G. Weber & J. Wesley Burnett & Irene M. Xiarchos, 2016. "Broadening Benefits from Natural Resource Extraction: Housing Values and Taxation of Natural Gas Wells as Property," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(3), pages 587-614, June.
    2. Balthrop, Andrew T. & Hawley, Zackary, 2017. "I can hear my neighbors' fracking: The effect of natural gas production on housing values in Tarrant County, TX," Energy Economics, Elsevier, vol. 61(C), pages 351-362.
    3. Loucao, Sebastian, 2014. "External Effects of Hydraulic Fracturing: Risks and Welfare Considerations for Water Supply in Germany," FCN Working Papers 4/2014, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised Aug 2015.
    4. Naveed Paydara, Olga Schenk, Ashley Bowers, Sanya Carley, John Rupp and John D. Graham, 2016. "The Effect of Community Reinvestment Funds on Local Acceptance of Unconventional Gas Development," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    5. Lai, Po-Hsin & Lyons, Kevin D. & Gudergan, Siegfried P. & Grimstad, Sidsel, 2017. "Understanding the psychological impact of unconventional gas developments in affected communities," Energy Policy, Elsevier, vol. 101(C), pages 492-501.

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    Keywords

    Fracking; Choice experiment; Welfare;

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