Valuing shale gas development in resource-dependent communities

摘要: Abstract Technological advances in oil and gas drilling have enabled the productive extraction of natural new regions. The benefits from employment income opportunities can help stimulate economies may be valued by local residents. At same time, however, shale activity alter landscapes is associated with negative externalities, including potential groundwater contamination. While some previous research has examined impact development, our paper focuses on impacts West Virginia, a state long history resource-extraction one whose economy lagged nation. Because its resource extraction, communities Virginia who limited other economic prospects value differently. Additionally, most used data during initial boom, ignoring slowdown that followed. Using coarsened exact matching (CEM) technique, we match houses near producing wells similar houses, order to examine how property values are affected proximity horizontal wells. This technique helps compensate for relatively small number housing transactions ensuring good counterfactual. After matching, estimate average capitalization effect We find price all (regardless water source) decreases as surrounding increases. However, also evidence this varies over time attenuates space.