Quantifying the Local Impact of Hydrogen Infrastructure: Evidence from Changes in Property Values in California

Area of Science:

• Energy Policy
• Environmental Economics
• Urban Planning

Background:

• Hydrogen energy is crucial for sustainable decarbonization.
• Assessing local community impacts is vital for equitable energy transitions.

Purpose of the Study:

• Quantify the effects of hydrogen infrastructure on residential property values.
• Analyze the distributional impacts across different communities.

Main Methods:

• Utilized a high-resolution panel of California residential property transactions (2012-2021).
• Incorporated data on hydrogen refueling stations (HRSs), hydrogen production facilities (HPFs), and hydrogen corridor pipelines (HCPs).
• Employed spatial analysis to assess property value changes within specific radii.

Main Results:

• Properties near HRSs devalued by 2.74%-3.45%; near HPFs by 4.52%-5.64%.
• A major hydrogen explosion exacerbated devaluation near HRSs (4.41%-5.28%).
• Minority communities experienced disproportionately higher property devaluation.

Conclusions:

• Hydrogen infrastructure imposes significant negative economic externalities on local communities.
• Policymakers must address these disparities to ensure equitable hydrogen energy deployment.
• Mitigation strategies are needed to minimize negative impacts on vulnerable populations.