Perception of Shale Gas Risks
An Associated Press review of reports of water contamination associated with oil and gas drilling found significant differences in the way complaints are recorded at the state level. For example, Texas collects the most comprehensive data on resident-submitted issues, whereas Pennsylvania tallies “raw numbers of complaints.” The review noted that “the lack of detail in some state reports could help fuel public confusion and mistrust.”
The public’s impression of potential well contamination can directly impact the housing market for surrounding homes, according to new research at RFF. RFF Visiting Fellow Lucija Muehlenbachs and coauthors write: “Access to a safe, reliable source of drinking water is an important determinant of a property’s value. Even a perceived threat to that access can have detrimental effects on housing prices.”
Linking Carbon Markets
Quebec and California formally linked their cap-and-trade systems this month. While this program could serve as a model for other regions, some in Quebec worry that “money could flow out of the province” when billions of dollars of allowances are purchased in 2015.
According to research by RFF’s Dallas Burtraw, Karen Palmer, Clayton Munnings, Paige Weber, and Matthew Woerman, concerns about allowance price dynamics are well-founded. They write that formal linking “come[s] with political economy consequences, as some interests will benefit and some will lose.” However, incrementally aligning the programs could “help anticipate and possibly dissipate the wealth transfers ” that create such consequences. Quebec Environmental Minister Yves-François Blanchet recently spoke at RFF on linking the Quebec and California markets; watch the video here.
