This paper examines the impact of earthquakes on residential property values using sales data from Oklahoma from 2006 to 2014. Before 2010, Oklahoma had only a couple of earthquakes per year that were strong enough to be felt by residents. Since 2010, seismic activity has increased, bring potentially damaging quakes several times each year and perceptible quakes every few days. Using hedonic models, we estimate that prices decline by 3 to 4 percent after a home has experienced a moderate earthquake measuring 4 or 5 on the Modifi ed Mercalli Intensity Scale. Prices can decline up to 9.8 percent after a potentially damaging earthquake with intensity above 6. The correlations between lowintensity (MMI 3) quakes and prices are smaller and vary between specifi cations. Our fi ndings are consistent with the experience of an earthquake revealing a new disamenity and risk that is then capitalized into house values.
The increasingly growing and controversial practice of natural gas development by horizontal drilling and high volume hydraulic fracturing ('fracking') faces a severe environmental insurance deficit at the industry level. Part of this deficit is arguably inherent to the process, whereas another part is caused by current risk information shortfalls on the processes and impacts associated with development. In the short and long terms, there are several conventional and unconventional methods by which industry-level and governmental-level policy can insure against these risks. Whilst academic attention has been afforded to the potential risks associated with unconventional natural gas development, little consideration has been given to the lack of insurance opportunities against these risks or to the additional risks promulgated by the dearth of insurance options. We chronicle the ways in which insurance options are limited due to unconventional gas development, the problems caused by lack of insurance offerings, and we highlight potential policy remedies for addressing these gaps, including a range of government-and industry-specific approaches.Keywords: Insurance; liability; hydraulic fracturing; fracking; risks; market gap Highlights: A gap exists in provision of liability insurance for 'fracking'-related risks The market gap is due primarily to uncertainties about probabilistic risk 2 Insurance for risks similar to 'fracking' highlight potential policy options Government regulation and/or industry agreements can effectively fill the gap Policies on insurance and liability coverage necessitate ethical considerations
This paper examines the impact of earthquakes on residential property values using sales data from Oklahoma from 2006 to 2014. Before 2010, Oklahoma had only a couple of earthquakes per year that were strong enough to be felt by residents. Since 2010, seismic activity has increased, bring potentially damaging quakes several times each year and perceptible quakes every few days. Using hedonic models, we estimate that prices decline by 3 to 4 percent after a home has experienced a moderate earthquake measuring 4 or 5 on the Modifi ed Mercalli Intensity Scale. Prices can decline up to 9.8 percent after a potentially damaging earthquake with intensity above 6. The correlations between lowintensity (MMI 3) quakes and prices are smaller and vary between specifi cations. Our fi ndings are consistent with the experience of an earthquake revealing a new disamenity and risk that is then capitalized into house values.
This paper examines the impact of earthquakes on residential property values using sales data from Oklahoma from 2006 to 2014. Before 2010, Oklahoma had only a couple of earthquakes per year that were strong enough to be felt by residents. Since 2010, seismic activity has increased, bring potentially damaging quakes several times each year and perceptible quakes every few days. Using hedonic models, we estimate that prices decline by 3 to 4 percent after a home has experienced a moderate earthquake measuring 4 or 5 on the Modifi ed Mercalli Intensity Scale. Prices can decline up to 9.8 percent after a potentially damaging earthquake with intensity above 6. The correlations between lowintensity (MMI 3) quakes and prices are smaller and vary between specifi cations. Our fi ndings are consistent with the experience of an earthquake revealing a new disamenity and risk that is then capitalized into house values.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.