Ph.D. candidate in Law and Economics Caroline Cecot will defend her dissertation, “Shale Development: Risks, Responses, and Regulation,” on Monday, March 24 from 1:00 PM – 2:30 PM in the Alexander Room, Law School. Cecot’s advisor is University Distinguished Professor W. Kip Viscusi. Professors Joni Hersch, Dana Nelson, and J.B. Ruhl comprise the rest of her dissertation committee. The defense is open to the public.
Summary of dissertation
A boom in shale development has exposed more areas, including heavily populated and environmentally sensitive areas, to the local benefits and costs of drilling activities. This dissertation employs economic techniques to examine the perceived risks of shale development as revealed through property transactions in a Pennsylvania county and through legislative decisions by New York towns. In general, I find that risks to water feature prominently in both contexts; properties that rely on private water wells are more likely to face property-value losses with nearby shale development, and towns with a higher proportion of residents that rely on private water wells are more likely to prohibit shale development. I then consider legal and regulatory interventions that could better manage risks to water, thereby possibly preventing property-value losses and outright bans.