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In brief... Fear of fracking: the impact on UK house prices

Stephen  Gibbons,  Stephan  Heblich,  Esther  Lho,  Christopher  Timmins,  December 2016
Paper No' CEPCP487: | Full paper (pdf)
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Keywords: shale gas; fracturing; property valuation; housing prices; consumer expectation; hedonic price; united kingdom

JEL Classification: Q5; Q42; Q51

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This Paper is published under the following series: CentrePiece Magazine
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Shale gas offers the prospect of a low-cost energy future – but does extracting it invoke anxieties about the possibility of environmental catastrophe among local residents? Research by Steve Gibbons and colleagues detects a distinct ‘fear of fracking’, as indicated by falling house prices in the one part of the country where exploratory drilling has taken place. Their study finds that house prices fell by up to 5% in the months after fracking triggered minor earthquakes. Compensation to local communities for the ‘psychological costs’ of fracking could be very costly.

CentrePiece 21 (3) Winter2016 pages: 6-7

This article summarises ‘Fear of Fracking: The Impact of the Shale Gas Exploration on House Prices in Britain’ by Steve Gibbons, Stephan Heblich, Esther Lho and Christopher Timmins, Spatial Economics Research Centre (SERC)Discussion Paper No. 207, October 2016.