APPLIED ECONOMICS AND POLICY Pipeline incidents and property


values Journal of Environmental Economics and Management, 127, Sept. 2024


WENDONG ZHANG ASSOCIATE PROFESSOR Charles H. Dyson School


of Applied Economics and Management Cornell SC Johnson College of Business Cornell University


LINK TO PAPER LINK TO WENDONG ZHANG VIDEO


Co-authors • Wendong Zhang Associate Professor, Charles H. Dyson School of Applied


Economics and Management, Cornell SC Johnson College of Business, Cornell University


• Nieyan Cheng, China University of Petroleum, Beijing, China • Minghao Li, New Mexico State University, Las Cruces • Pengfei Liu, University of Rhode Island, Kingston • Qianfeng Luo, Chinese Academy of Social Sciences, Beijing, China • Chuan Tang, Huazhong Agricultural University, Wuhan, China


Summary Pipelines are critical infrastructure for transporting various types of hazardous


materials (HAZMAT), including natural gas, crude oil, and other petroleum products (Masters, 2022). Since 2004, the development of shale oil and shale gas has experienced a boom from the U.S. heartland to the coastal regions, and this rapid expansion has heightened concerns about pipeline safety and the socioeconomic effects of pipeline incidents.


Tis study investigates the impacts of 426 gas distribution pipeline incidents on property values in the United States between 2010 and 2020. Te authors find that only high-profile incidents -- those involving explosion, ignition, or fatalities and occurring on above-ground pipelines -- have adverse effects on nearby property values. Tese events are followed by decreases in value of 8.2% within 1000 m, persisting for about eight years. Initial demand-side drops are shorter-lasting. In contrast, the authors do not find statistically significant price effects from pipeline installation, and they also demonstrate that there is substantial heterogeneity by the type of incident. Tey advise that results based on studies of individual incidents should be generalized with caution.


CONTENTS TO MAIN


| RESEARCH WITH IMPACT: CORNELL SC JOHNSON COLLEGE OF BUSINESS • 2024 EDITION


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