Department of Economics, Duke University
PO Box 90097
Durham, NC 27708
Institutional Affiliation: Duke University MA Student
NBER Working Papers and Publications
|November 2016||Fear of Fracking? The Impact of the Shale Gas Exploration on House Prices in Britain|
with Steve Gibbons, Stephan Heblich, Christopher Timmins: w22859
Shale gas has grown to become a major new source of energy in countries around the globe. While its importance for energy supply is well recognized, there has also been public concern over potential risks such as damage to buildings and contamination of water supplies caused by geological disturbance from the hydraulic fracturing (‘fracking’) extraction process. Although commercial development has not yet taken place in the UK, licenses for drilling were issued in 2008 implying potential future development. This paper examines whether public fears about fracking are evident in changes in house prices in areas that have been licensed for shale gas exploration. Our estimates suggest differentiated effects. Licensing did not affect house prices but fracking the first well in 2011, which cause...