Wing Hong Chan
The Impact of Oil and Natural Gas Facilities on Rural Residential Property Values: A Spatial Hedonic Analysis (ABSTRACT)
Boxall, P.C., Chan, W.H., & McMillan, M.L.
published: 2005 | Research publication | Refereed Journals - Economics
Boxall, P., Chan, W.H., and M. McMillan, (2005). "The Impact of Oil and Natural Gas Facilities on Rural Residential Property Values: A Spatial Hedonic Analysis". Resources & Energy Economics, 27, 248-269.
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 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.
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revised Jan 14/05
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