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Rail accidents and property values in the era of unconventional energy production

Author

Listed:
  • Tang, Chuan
  • Czajkowski, Jeffrey
  • Heintzelman, Martin D.
  • Li, Minghao
  • Montgomery, Marilyn

Abstract

We estimate the effect of 33 derailments involving hazardous materials on property values in New York State between 2004 and 2013. Difference-in-differences analyses show that, on average, a derailment depreciates housing values within a one-mile radius by 5%–8%. The prices of affected properties return to pre-accident levels after about 480 days. In addition, we find that the impacts of derailments on property values are limited to the local area. These results provide evidence for evaluating the economic costs of rail transportation to nearby communities and for considering policy options in the current era of U.S. energy transformation resulting in substantial increases in the rail shipment of fuels.

Suggested Citation

  • Tang, Chuan & Czajkowski, Jeffrey & Heintzelman, Martin D. & Li, Minghao & Montgomery, Marilyn, 2020. "Rail accidents and property values in the era of unconventional energy production," Journal of Urban Economics, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:juecon:v:120:y:2020:i:c:s0094119020300668
    DOI: 10.1016/j.jue.2020.103295
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    More about this item

    Keywords

    Rail transportation; Hazardous material; Unconventional energy; Rail accident; Hedonics; Property value;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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