The costs of induced seismicity: A hedonic analysis

Navigating Resilient Post-Disaster Recovery in Asia and the Pacific

“…A recent empirical study uses satellite data on real-time active fire locations in Nepal and concludes that an additional unit increase in the number of forest fire incidents over the last year results in a 4.48% decline in residential property values (Paudel 2022a). These findings are consistent with the theoretical notion that differences in home prices between high-risk areas prone to natural disasters and low-risk counterparts may be recovered using a hedonic price model (Rosen 1974;Metz, Roach, and Williams 2017).…”

“…Outside South Asia, Boes, Nüesch, and Wüthrich (2015) focus on the 2011 Fukushima accident as a quasi-experimental shock to show that apartments near nuclear power plants in Switzerland reported a 2.3% price decline, suggesting that rental prices reflect perceived risks of nuclear power plants to some extent. In the United States, Metz, Roach, and Williams (2017) investigate changes in home prices in seismically active regions before and after earthquakes in Oklahoma County and document that housing prices declined between 3.15% and 4.7% in areas with high seismicity. In the context of South Asia, the economic effects of natural disasters have largely focused on the incidence of forest fires and earthquakes (Paudel 2021a(Paudel , 2023a(Paudel , 2023c.…”

Association between Oklahoma earthquakes and anxiety-related Google search episodes

“… 22 The value of homes in Oklahoma—where builders have not constructed earthquake-resistant structures—appears to drop after moderate earthquakes. 60 , 61 Governor Mary Fallin has also twice declared a state of emergency after earthquakes in 2016. 62 These events may result in concerns about safety and economic loss perhaps causing, in turn, the anxiety gauged by Google searches.…”

The impact of fracking activities on Oklahoma's housing prices: A panel cointegration analysis

“…Finally, within a similar framework, Metz et al (2017) investigate how seismic activity in Oklahoma has impacted the costs of home prices. Their findings illustrate a negative effect on property values.…”