Local property rights: pipeline and eminent domain

Transportation infrastructure, including pipelines, play a role in making natural gas valuable resource. Land is important as a right of way for the pipelines. Plans by Sunoco to build a natural gas pipeline that will pass near Carlisle require the acquisition of land or rights to place a pipe on the land. If landowners refuse, one option is to offer them more. Another is to try and use eminent domain to require them to give up the land, as Sunoco is attempting today. Our reading of Ronald Coase’s “Problem of Social Cost” will help us think about the efficient outcome; we should also think about the equity of any decision.

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