WHIMBY (What’s Happening in My Backyard_)_ A Community Risk-Benefit Matrix of Unconventional Oil and Gas Development _ Resources for the Future housing benefit amount

The community risk-benefit matrix illustrates and summarizes the literature on the community impacts of unconventional oil and gas development, specifically regarding the prevalence, consistency, and quality of findings across studies and regions.

RFF experts and collaborators are working to help answer questions about the community impacts of unconventional oil and gas development and better understand the benefits and costs to local communities, as well as which regulatory, voluntary, and market actions can maximize benefits while reducing costs. As part of this effort, the community risk-benefit matrix identifies specific areas of concern related to impacts addressed by the team’s literature review (left column), as well as impacts for which RFF experts have conducted original research and analysis (see further reading below each section of the matrix).Housing benefit amount

The matrix indicates the quality of the literature for each impact, judged subjectively with the color indicating whether we find the studies analyzing an impact to be, on average, of a certain quality. Impacts may be assessed by multiple low-quality studies and a medium-quality study, for example, and we would consider this body of literature to be low quality. A high-quality classification indicates that we trust the results of such studies, including the accuracy, magnitude, and direction of the results—meaning, in a practical sense, that it has no serious or fatal flaws (such as inadequate methodologies) that would lead us to question the results. A study is considered low quality if we believe we cannot trust the results because the study has multiple, serious flaws (e.G., methodology, data, focus, or study design are inadequate to reliably estimate outcomes).Housing benefit amount A study is considered medium quality if it does not fit in the other two categories. A study is considered medium quality if it is not of high or low quality. A study is therefore medium quality if it has any such major flaw or if either the methodology, data, focus, or study design leads to questionable results for a number of reasons. Generally, we find the magnitude and direction of these results to be informative, but question the precision.

Lastly, we summarize the findings reported by the literature for each impact—whether the studies as a whole report increases, decreases, or no relationship between the impact and an increase in unconventional oil and gas development. The “heterogeneous” classification indicates that the literature reports different outcomes across areas. The “inconsistent” classification indicates that the literature reports contradictory results (i.E., two studies find an increase or decrease for a certain impact in the same context).Housing benefit amount

Local governments in municipalities and counties across the united states as well as school districts can benefit from oil and gas production in their regions through a number of revenue streams, including local taxes, greater property taxes, and enhanced economic development. Many states also share revenues with local governments from severance taxes as well as state and federal leases. At the same time, costs to local governments are likely to increase—mainly associated with road damages or expansion of sewer and water systems and sometimes more crime—and local areas can suffer if new revenues do not keep pace with needs. Even if revenues offset local government operating expenses (e.G., staff costs), localities can go into debt due to increased infrastructure spending to support oil and gas production and increased populations.Housing benefit amount some counties and municipalities reach agreements with industry to fix road damages directly (or pay to fix them), as well as build recreation or education infrastructure in order to mitigate costs to the community overall, help balance the impacts of oil and gas production more broadly in a region, and generate goodwill. Education outcomes can likewise be affected by changes to the composition and size of student populations, school finances, and the market for teachers and administrators, each of which may impact teacher effectiveness and student performance. Overall, how a local government or school district might be affected by an increase in unconventional oil and gas development is largely driven by local conditions and, in particular, state and local fiscal policies.

Large variation exists across regions.Housing benefit amount increase in number of students per teacher found for texas and north dakota, yet significant decreases found in the marcellus region. Appears to be led by change in student numbers and does not indicate a change in teachers.

Several studies analyzing different regions report differing results. One higher-quality study found increases for texas and several studies found an increase for capital spending per pupil in north dakota. However, no statistically significant association found for other regions.

Of particular concern to communities experiencing or making the decision to allow unconventional oil and gas development has been the potential for adverse health effects and seismicity-related safety impacts (and damages) from such development. Since 2009, the central and eastern regions of the united states have seen a dramatic increase in the rate of earthquakes, with oklahoma surpassing california in the number of M3+ earthquakes per year in 2014.Housing benefit amount this increase has been tied to underground injection of wastewater, enhanced oil recovery activities, and (more recently) fracking. The literature on health concerns is less conclusive. Local air pollution related to engines used in drilling and stimulation phases of development as well as truck traffic are areas of potential concern, and noise and light pollution could be associated with a number of health impacts, such as stress or disturbed sleep. Public discussions often reflect concerns about cancer or adverse birth outcomes as well, though which development activities are to blame, if any, is less clear. While such concerns are understandable for local communities, the literature has been unable to either definitely prove or disprove any health impact studied.

Studies report evidence of an increase or no association.Housing benefit amount one risk assessment finds an elevated risk of leukemia and other cancers based on air measurements of benzene, though another study finds air measurements of pollutants to be below a threshold of concern.

The localized impacts of shale gas and tight oil development are often framed in terms of income, employment, and economic development. These impacts may take various forms: royalty payments to mineral rights owners, the potential for increased direct and indirect job opportunities, increased sales for local businesses, and possible growth in wages for both extraction-related sectors and others due to an increase in the demand for labor. All of these benefits then have indirect and induced benefits to other sectors and the regional economy. Landowners with active leases earn royalties, but their neighbors and other landowners who do not own their mineral rights may receive no compensation, experience negative externalities, and even see property values drop.Housing benefit amount workers see new opportunities but, at least initially, much of the workforce comes in from outside the community, particularly in areas that do not have prior experience with oil and gas development. Likewise, local businesses that support oil and gas operations see increased demands and income growth, but residents may see higher prices for goods and housing. The overall economic changes to a local area are therefore not necessarily clear cut, though the literature generally finds an overall increase in employment and income.

Though no literature review was conducted for environmental impacts as part of this initiative, RFF experts have published and are in the process of conducting a number of studies that address some of these impacts, including those to water quality and land use.

One study examines the spatial and temporal patterns of water withdrawals and consumption for natural gas development in the susquehanna river basin, finding that susquehanna river basin commission policies for gas companies have been more binding than what has been suggested.Housing benefit amount

Two studies address this endpoint. One finds no systematic effects of spills on pennsylvania streams but does find effect of sedimentation from well sites and roads as well as effluent from treatment plants. One study finds that pits and tanks both present risks of spillage, but does not examine stream impacts.

Olmstead, sheila M., lucija muehlenbachs, jhih-shyang shih, ziyan chu, and alan krupnick. 2013. “ shale gas development impacts on surface water quality in pennsylvania.” proceedings of the national academy of sciences 110 (3): 4962–4967.

One study uses geospatial analysis to assess the short- and medium-run effects of increased oil and gas development on agricultural land use in north dakota, finding that well construction and subsequent operation are correlated with a reduction in crop acreage.

One study develops an optimization approach to incorporate environmental objectives into shale gas pipeline development.Housing benefit amount the authors illustrate model usage by estimating the trade-offs between costs and environmental externalities using data from northeastern pennsylvania.