Economics at your fingertips  

I can hear my neighbors' fracking: The effect of natural gas production on housing values in Tarrant County, TX

Andrew T. Balthrop and Zackary Hawley ()

Energy Economics, 2017, vol. 61, issue C, 351-362

Abstract: In this study we estimate the effect of hydraulically fractured natural gas wells on residential real estate prices. We exploit variation in distance to nearby gas wells in home sale prices to estimate this effect. In contrast to previous studies, we focus on a relatively densely populated area, a section of the Dallas–Ft. Worth–Arlington urban area. Using a dataset of 127,556 observations from Tarrant County, Texas over the period 2005–2011, we find robust evidence that increased proximity to a well leads to reduced home sale prices. Existence of wells within 3500ft of a property reduces property values by approximately 1.5–3%. We demonstrate that the reduction seems to be driven by unconventional rather than conventional wells, and that well construction causes an added 1–2% reduction in home value.

Keywords: Hydraulic fracturing; Spatial dependence; Hedonic valuation (search for similar items in EconPapers)
JEL-codes: Q35 Q33 R21 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
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:

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol and J. P. Weyant

More articles in Energy Economics from Elsevier
Series data maintained by Dana Niculescu ().

Page updated 2018-01-15
Handle: RePEc:eee:eneeco:v:61:y:2017:i:c:p:351-362