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Article
Valuation of Expectations: A Hedonic Study of Shale Gas Development and New York's Moratorium
Journal of Environmental Economics and Management
  • Andrew Boslett, University of Rhode Island
  • Todd Guilfoos, University of Rhode Island
  • Corey Lang, University of Rhode Island
Document Type
Article
Date of Original Version
1-1-2015
DOI
10.1016/j.jeem.2015.12.003
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.

Citation Information

Boslett, A., Guilfoos, T., & Lang, C. (2015). Valuation of Expectations: A Hedonic Study of Shale Gas Development and New York's Moratorium. Journal of Environmental Economics and Management, 77(2016), 14-30.

Available at: http://www.dx.doi.org/10.1016/j.jeem.2015.12.003