Department of Economics
University of Calgary
2500 University Drive NW
Calgary, AB T2N 1N4
and Resources for the Future
NBER Working Papers and Publications
|September 2017||The Accident Externality from Trucking|
with Stefan Staubli, Ziyan Chu: w23791
The presence of a heavy truck on the road can impose an externality if accidents occur that would not have otherwise. We find each additional truck on the road increases the risk of a truck accident—but also, at an even higher rate, the risk of a car-on-car collision. Our estimates imply two percent of all car-on-car collisions can be attributed to trucks on the road. This negative externality falls on all road users through higher car insurance premiums: one truck, driving for a year in the same zip code, increases the insurance premium of each new enrollee by $0.48/year.
|May 2016||Price Regulation and Environmental Externalities: Evidence from Methane Leaks|
with Catherine Hausman: w22261
We estimate how much US natural gas distribution firms spend to reduce methane leaks. Methane is a significant contributor to climate change, so the wedge between the private and social benefits of abatement is large. Moreover, incentives to abate leaks are additionally weakened by this industry being a regulated natural monopoly: current price regulations allow many distribution firms to pass the cost of any lost gas on to their customers. Our estimates imply that too little is spent repairing leaks. In contrast, accelerated pipeline replacement cannot in general be justified by climate benefits alone.
|January 2014||The Housing Market Impacts of Shale Gas Development|
with Elisheba Spiller, Christopher Timmins: w19796
Using data from Pennsylvania and New York and an array of empirical techniques to control for confounding factors, we recover hedonic estimates of property value impacts from shale gas development that vary with geographic scale, water source, well productivity, and visibility. Results indicate large negative impacts on nearby groundwater-dependent homes, while piped-water-dependent homes exhibit smaller positive impacts, suggesting benefits from lease payments. At a broader geographic scale, we find that new wellbores increase property values, but these effects diminish over time. Undrilled permits cause property values to decrease. Results have implications for the debate over regulation of shale gas development.
|September 2012||Shale Gas Development and Property Values: Differences across Drinking Water Sources|
with Elisheba Spiller, Christopher Timmins: w18390
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.