The Impact of Oil and Natural Gas Facilities on Rural Residential Property

Peter C. Boxall, Wing H. Chan, and Melville L. McMillan ()
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Peter C. Boxall, Wing H. Chan, and Melville L. McMillan: Wilfrid Laurier University
Authors registered in the RePEc Author Service: Wing Chan () and Melville McMillan ()

Working Papers from Wilfrid Laurier University, Department of Economics

Abstract: This paper examines the impact of oil and gas facilities on rural residential property values using data from central Alberta, Canada. The influences are evaluated using two groups of variables characterizing hazard effects and amenity effects. A spatial error model was employed to capture the spatial dependence between neighbouring properties. The results show that property values are negatively correlated with the number of sour gas wells and flaring oil batteries within 4km of the property. Indices reflecting potential health hazards associated with rates of H2 S release (based on information from Emergency Response Plans and Zones) also have a significant negative association with property prices. The findings suggest that oil and sour gas facilities located within 4 km of rural residential properties significantly affect their sale price.

Keywords: sour gas; hedonic prices; property value impacts (search for similar items in EconPapers)
JEL-codes: Q32 Q49 (search for similar items in EconPapers)
Date: 2005, Revised 2005
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Persistent link: http://EconPapers.repec.org/RePEc:wlu:wpaper:eg0039

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