The Housing Market Impacts of Wastewater Injection Induced Seismicity Risk

43 Pages Posted: 15 May 2017 Last revised: 16 May 2017

See all articles by Haiyan Liu

Haiyan Liu

University of Georgia

Susana Ferreira

University of Georgia

Brady Brewer

University of Georgia

Date Written: February 16, 2017

Abstract

Using data from Oklahoma County, an area severely affected by the increased seismicity associated with injection wells, we recover hedonic estimates of property value impacts from nearby shale oil and gas development that vary with earthquake risk exposure. Results suggest that the 2011 Oklahoma earthquake in Prague, OK, and generally, earthquakes happening in the county and the state have enhanced the perception of risks associated with wastewater injection but not shale gas production. This risk perception is driven by injection wells within 2 km of the properties.

Keywords: Earthquake, Wastewater Injection, Oil and Gas Production, Housing Market, Oklahoma

JEL Classification: L71, Q35, Q54, R31

Suggested Citation

Liu, Haiyan and Ferreira, Susana and Brewer, Brady, The Housing Market Impacts of Wastewater Injection Induced Seismicity Risk (February 16, 2017). Available at SSRN: https://ssrn.com/abstract=2967579 or http://dx.doi.org/10.2139/ssrn.2967579

Haiyan Liu (Contact Author)

University of Georgia ( email )

Athens, GA 30602-6254
United States

Susana Ferreira

University of Georgia ( email )

Athens, GA 30602-6254
United States

Brady Brewer

University of Georgia ( email )

Athens, GA 30602-6254
United States

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