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A Review of Fracking and its Effects on Real Estate

In this paper we review the phenomena of hydro ‘‘fracking’’ operations for oil and gas in the United States. We provide background information on fracking, a summary of federal and state fracking disclosure and management regulations, and an evaluation of the potential surface and subsurface effects.

We then examine case studies of claims of contamination from several shale-heavy states. Lastly, we report the results of survey research related to proximity to fracking operations in Texas and Florida. Our contingent valuation surveys show a 5%–15% reduction in bid value for homes located proximate to fracking scenarios, depending on the petroleum-friendliness of the venue and proximity to the drilling site.

 

Authors: Ron Throupe - University of Denver, Robert A. Simons - Cleveland State University and Xue Mao - University of Denver

Download and read this paper in PDF format in the attachment section below.

 

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