NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Shale Gas Development and Property Values: Differences across Drinking Water Sources

Lucija Muehlenbachs, Elisheba Spiller, Christopher Timmins

NBER Working Paper No. 18390
Issued in September 2012
NBER Program(s):Environment and Energy Economics

While shale gas development can result in rapid local economic development, negative externalities associated with the process may adversely affect the prices of nearby homes. We utilize a triple-difference estimator and exploit the public water service area boundary in Washington County, Pennsylvania to identify the housing capitalization of groundwater risk, differentiating it from other externalities, lease payments to homeowners, and local economic development. We find that proximity to wells increases housing values, though risks to groundwater fully offset those gains. By itself, groundwater risk reduces property values by up to 24 percent.

download in pdf format
   (1732 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18390

Users who downloaded this paper also downloaded* these:
Muehlenbachs, Spiller, and Timmins w19796 The Housing Market Impacts of Shale Gas Development
Cesur, Tekin, and Ulker w18736 Air Pollution and Infant Mortality: Evidence from the Expansion of Natural Gas Infrastructure
Burkhauser, Larrimore, and Simon w17164 A "Second Opinion" on the Economic Health of the American Middle Class
Greenstone, List, and Syverson w18392 The Effects of Environmental Regulation on the Competitiveness of U.S. Manufacturing
Ottaviano and Peri w12497 Rethinking the Effects of Immigration on Wages
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us