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Is the Shale Energy Boom a Bust for Nearby Residents? Evidence from Housing Values in Pennsylvania
Author(s) -
Gopalakrishnan Sathya,
Klaiber H. Allen
Publication year - 2014
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aat065
Subject(s) - oil shale , boom , bust , property value , shale gas , natural resource economics , geology , economics , real estate , finance , oceanography , paleontology
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.