Energy Economics and Finance Seminar
Event Summary
The seminar series in Energy Economics & Finance (EEF) is jointly organized by Wharton’s Business Economics and Public Policy Department, the Kleinman Center for Energy Policy, and Wharton’s Business, Climate and Environment Lab. The scope of the seminar includes regulation and policy papers. The scope of the seminar also includes environmental and transportation issues, as long as there is a connection with energy. Sessions are biweekly on Mondays from 3:30 p.m. – 4:30 p.m.
Snacks, beer, and wine will be served after the seminar!
For Fall 2024, the seminar will be held in-person in the Kleinman Center Classroom (Fisher Fine Arts Building Room 306).
Find and add a Google Calendar version of the schedule on the BEPP seminar page.
To sign up for the seminar, please send your name, email, and affiliation to Dhivya Kaushik: dhivya@wharton.upenn.edu
Talk Title: Effects of energy system transitions on the housing market
Abstract: Energy system transitions are vital to decarbonization goals. Examples of such energy system transitions include using hydrogen energy in industrial processes and heavy-duty vehicles, adding carbon capture, utilization, and sequestration(CCUS) in fossil fuel production, electricity generation, and other industrial processes, as well as electrifying the transportation and building sectors. While such low-carbon energy transitions provide global public goods of reducing carbon emissions, it is also important to evaluate the local impacts of such transitions. In this talk, I plan to discuss a series of my recent papers that quantify such local impacts of energy transitions through the lens of impacts on the housing market, with a focus on the first paper that looks at hydrogen energy. This paper evaluates the effect of hydrogen infrastructure on property values and potential environmental justice challenges among heterogeneous populations. We apply a hedonic property value approach and repeated sales method using about 1.8 million housing transaction records during 2012-2021 combined with hydrogen infrastructure data. Results indicate that properties within a 2.2 km radius of a hydrogen refueling station(HRS) have an average devaluation of 2.74%-3.45% (or $26,105-$32,870) compared to those without a nearby HRS. Hydrogen production facilities also impact housing prices in a negative manner, causing properties within a 4kmradius to decrease in value by 4.52%-5.64%. Heterogeneity analysis indicates that properties in communities with low percentage Whites, high percentage Blacks and Hispanics experienced a higher price reduction, highlighting systemic racial inequities and environmental injustice. Our results highlight the importance of balancing the economic and environmental benefits of hydrogen and recognizing the welfare interests of diverse socio-economic groups to mitigate environmental injustice and promote sustainable economic growth. Lastly, I will also briefly discuss my other papers that quantify the impact of CCUS, electric vehicle charging stations, and heat pumps on housing prices.
Lucy Qiu
Professor of Energy Policy and EconomicsYueming (Lucy) Qiu is a professor and associate dean for research and faculty affairs in the School of Public Policy at the University of Maryland College Park.
Fall Seminar Dates:
- 9/9: Imelda, Geneva Graduate Institute
- 9/16: Pari Sastry, Columbia University
- 9/30: Sandra Schafhäutle, University of Pennsylvania
- 10/14: Seth Blumsack, Penn State
- 10/28: Lucy Qiu, University of Maryland
- 12/2: Karen Palmer, Resources for the Future
