A new peer-reviewed study published in the American Economic Review has found that Pennsylvania homes located in areas using well water saw home prices drop by an average of $30,1676 when shale gas drilling occurred within a distance of 1.5 kilometers. The study looked at property values over a 17-year period. Other key findings from the study:
- A shale well located within one kilometer of a home reliant on well water was associated with a 13.9 percent average decrease in home value. The value decreases more when a home is closer to a shale gas well. The maximum decrease found was 16.5 percent.
- In neighborhoods with a municipal water supply, rather than water wells, home values rose slightly after shale wells opened--but only when shale wells were out of view of the property. The study authors say that these results are driven by royalty payments (or expectations of royalties) associated with producing wells.
This study is consistent with previous research on how fracking impacts home values, and is more evidence for the continued need for better regulation of fracking and all of its harms.
Related Blogs
Skip carousel items
Environmental Wins Abound in NY’s 2022 Legislative Session
Expert BlogNew YorkMarisa Guerrero, Rich Schrader
Read our recap of the environmental wins that passed in New York State's 2022 legislative session. With the tools to prevent climate catastrophe being dismantled at the federal level, this kind of bold action at the state level is more…
Will the Supreme Court Protect the Clean Air Act?
Expert BlogUnited StatesLissa Lynch
The court’s decision in West Virginia v. EPA could roll back decades of progress at a time when we can least afford it.
Solving Supply Chain Issues Must Center Health and Workers
Expert BlogUnited StatesHeather Kryczka, Patricio Portillo
Now more than ever, governments must lean into labor laws that protect workers and environmental standards that accelerate the transition to zero-emission freight movement, all to help untangle supply chains and mitigate pollution.