Estimation of Property Value Changes from Nearby Carbon Capture, Utilization, and Storage Projects in the United States

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Authors: Kaifang Luo, Yueming Lucy Qiu, Pengfei Liu, Yingdan Mei
Cited by: 1
References: 55

Abstract

Abstract Carbon capture, utilization, and storage (CCUS) is vital to decarbonization, but its socioeconomic impact on nearby communities remains understudied. Using property-level housing transaction data (1990–2021) matched to nationwide CCUS project records, we apply a hedonic difference-in-differences framework to quantify the net impact of CCUS proximity on nearby housing prices. CCUS operations generate a price premium of 3.90% ($8582 on average) for homes within 4.2 km, with no effect beyond this distance. Effects vary by facility type and distance: capture facilities raise values at moderate distances (3–4.2 km), consistent with spillovers from job creation, while storage facilities generate more localized premiums within 1 km, reflecting direct financial compensation to nearby landowners. These estimates reflect the incremental effect of CCUS equipment on housing prices near the host facility, not the net effect of the plant plus CCUS relative to no facility at all, and could differ if the two were considered jointly. A triple-difference comparison against matched non-CCUS facilities of the same industry and scale confirms that CCUS itself, rather than the presence of an industrial facility generally, drives this incremental effect. Our findings provide revealed-preference evidence that communities perceive a net positive value from nearby CCUS projects, informing siting and benefit-sharing policy.

Fields of Study & Subjects

Climate Change Policy and Economics Carbon Dioxide Capture Technologies Atmospheric and Environmental Gas Dynamics

Publication details

Journal / source
Environmental Science & Technology
Publisher
American Chemical Society (ACS)
Volume
60
Issue
37
Pages
26306–26318
Publication date
7 September 2026
Language
EN