EconPapers    
Economics at your fingertips  
 

Valuation of expectations: A hedonic study of shale gas development and New York’s moratorium

Andrew Boslett, Todd Guilfoos and Corey Lang

Journal of Environmental Economics and Management, 2016, vol. 77, issue C, 14-30

Abstract: This paper examines the local impacts of shale gas development (SGD). We use a hedonic framework and exploit a discrete change in expectations about SGD caused by the New York State moratorium on hydraulic fracturing. Our research design combines difference-in-differences and border discontinuity, as well as underlying shale geology, on properties in Pennsylvania and New York. Results suggest that New York properties that were most likely to experience both the financial benefits and environmental consequences of SGD dropped in value 23% as a result of the moratorium, which under certain assumptions indicates a large and positive net valuation of SGD.

Keywords: Shale gas development; Hydraulic fracturing; Hedonic valuation; Expectations; Rational expectations; Moratorium; Difference-in-differences; Border discontinuity (search for similar items in EconPapers)
JEL-codes: Q3 Q5 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0095069615001023
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eee:jeeman:v:77:y:2016:i:c:p:14-30

Access Statistics for this article

Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

More articles in Journal of Environmental Economics and Management from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2017-05-19
Handle: RePEc:eee:jeeman:v:77:y:2016:i:c:p:14-30