Archive for July, 2008

Natural gas pipelines do not affect residential property values

Saturday, July 12th, 2008

A recent LNG terminal building boom has, in turn, produced a natural gas pipeline building boom.  Terminals bring in shipments of liquefied natural gas (LNG).  Through a regasification process, the LNG is changed back into gaseous natural gas.  Pipelines transmit the natural gas (in gas, not liquid, form) from terminals to end users and to other pipelines.

In some places, property owners and other stakeholders have expressed concern that a proposed pipeline would reduce the values of nearby properties.  Pipeline operators note that natural gas pipelines typically do not change the general use of the land. Certain building structures and landscaping, however, cannot be built on the pipeline right of way.  Some argue that a pipeline introduces a safety or environment risk, and that such risks reduce property values.  On the other hand, a pipeline can provide a positive amenity, such as a greenbelt or buffer that may increase property values.

Eric Fruits recently completed an econometric study of the relationship between residential property values and proximity to a natural gas pipeline.  The analysis indicates that neither the announcement of a proposed pipeline nor the completion of the pipeline had any measurable effect on property values.

Posted in Economic Impacts, Energy, Real Estate | Comments Off

More shaking, less salt? Do the number of salt shaker holes really matter?

Friday, July 11th, 2008

In a widely repeated story, the Daily Mail reports that, in an effort to reduce salt consumption, several city councils in the U.K. have ordered 5-hole salt shakers and begun giving them away to chip shops and carry-outs.  The 5-hole shakers are to replace 17-hole shakers.  The councils hope that fewer holes will result in lower salt consumption.  According to the story, one council spent two weeks studying the issue before declaring that 5-hole shakers would solve the city’s sodium related health concerns.

Steve Buckstein has stirred up a lively debate on the role of government in guiding individuals’ health and lifestyles.  However, something that has been missing from the discussion is whether the number of holes actually affects salt consumption.

There has been very little research on the topic.  The only known academic study reports the following:

  1. The total area of the shaker holes are more important than the number of holes.  More area, more salt is shaken.
  2. For a given area, multi-holed shakers are associated with lower salt use than single-holed shakers.

Therefore, the study suggests that reducing the number of shaker holes will reduce salt consumption only if it also reduces the total amount of hole area.

Posted in Government, Health Care | Comments Off

Oregon’s state and local spending: 11th highest in the nation

Friday, July 11th, 2008

Eric Fruits was invited by Oregon’s Revenue Restructuring Task Force to compare Oregon’s state and local government expenditures with other states. In his presentation, Dr. Fruits reported that:

  • Oregon’s per capita state and local expenditures almost doubled between the 1998-99 fiscal year and the 2004-05 fiscal year.  The most recent data from the Census shows expenditures of $8,060 per person.
  • Oregon has the 11th highest state and local expenditures in the U.S. as a share of personal income.
  • Oregon’s state and local expenditures are $2.8 billion higher than statistically predicted by its income and demographics.  That amounts to $776 per person.
  • Oregon’s public employee pension system and insurance payments contribute to the higher spending.  Oregon’s spending on these items accounts for 12.5 percent of total state and local expenditures.  The average among all states is 8.3 percent.  Oregon’s spending on these items would be approximately $1 billion lower if it was “in line” with other states.

The most recent study, co-authored with Randall Pozdena and published by Cascade Policy Institute, is a follow-up to earlier studies published in 2002 and 2004.

Posted in Government, Pensions, Statistics | Comments Off