Shale Gas Development and Housing Values over a Decade: Evidence from the Barnett Shale

摘要

Extracting natural gas from shale formations can create local economic benefits such as publicrevenues but also disamenities such as truck traffic, both of which change over time. We studyhow shale gas development affected zip code level housing values in Texas’ Barnett Shale, whichsplits the Dallas-Fort Worth region in half and is the most extensively developed shale formationin the U.S. We find that housing in shale zip codes appreciated more than nonshale zip codesduring peak development and less afterwards, with a net positive effect of five to six percentagepoints from 1997 to 2013. The greater appreciation in part reflects improved local publicfinances: the value of natural gas rights expanded the local tax base by $82,000 per student,increasing school revenues and expenditures. Within shale zip codes, however, an extra well persquare kilometer was associated with a 1.6 percentage point decrease in appreciation over thestudy period.