Work

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

Year: 2026

Type: article

Abstract: Hydrogen is expected to play a key role in the sustainable decarbonization of energy systems. While hydrogen may provide global public good for reducing carbon emissions, it is important to quantify its potential impact on local communities for ensuring equitable and socially accepted energy transitions. This study quantifies the effects of hydrogen infrastructure on nearby communities by using a high-resolution panel of residential property transactions in California from 2012 to 2021. The analysis incorporates three types of hydrogen infrastructure: hydrogen refueling stations (HRSs), hydrogen production facilities (HPFs), and hydrogen corridor pipelines (HCPs). Our findings show that residential properties within a 2.2 km radius of an HRS experience an average devaluation of 2.74%-3.45% (or US$19,413-$24,444). Following a major hydrogen explosion, this depreciation intensifies to 4.41%-5.28%. HPFs also exert significant negative externalities, with property values declining by 4.52%-5.64% within a 4 km radius. Heterogeneity analyses reveal that minority communities, particularly those with low shares of White residents and high proportions of Black and Hispanic populations, experienced disproportionately greater devaluation. Our empirical evidence of the local impact can help policymakers better systematically promote the larger scale of hydrogen energy deployment while minimizing the potential negative impacts on local communities.

Source: Environmental Science & Technology

DOI: 10.1021/acs.est.5c08792