**Preface to "Empirical Analysis of Natural Gas Markets"**

Recent developments in the natural gas industry warrant new analyses of related issues and markets. Abundant supplies of natural gas unearthed by hydraulic fracturing have altered the landscape for energy economics. Environmental, social, and governance (ESG) investments have accelerated the shift away from coal as the dominant source of electricity, in part because natural gas is the cleanest burning fossil fuel. The processing and liquefaction of natural gas remove most of its impurities, and compared to petroleum and coal combustion, natural gas combustion releases relatively little CO2 and NOX, among other pollutants. Its low environmental impact and reduced volume make liquefied natural gas (LNG) a popular source of energy during this time of transition between traditional fuels and newer options. Broad availability furthers the appeal of LNG. Unlike oil, whose sources are concentrated geographically, natural gas is extracted on six continents. In the United States, the shale gas revolution has made natural gas a game changer. Due to its many sources, even countries that import LNG can limit their supply-side risk with strategies that diversify their suppliers. In this book, we focus on empirical analyses of the natural gas market and its growing relevance worldwide.

> **David A. Anderson, Shigeyuki Hamori** *Editors*

## *Article* **Natural Gas Transmission Pipelines: Risks and Remedies for Host Communities**

#### **David A. Anderson**

Department of Economics and Finance, Centre College, 600 W. Walnut St., Danville, KY 40422, USA; anton42@adelphia.net

Received: 23 March 2020; Accepted: 10 April 2020; Published: 12 April 2020

**Abstract:** Transmission pipelines deliver natural gas to consumers around the world for the production of heat, electricity, and organic chemicals. In the United States, 2.56 million miles (4.12 million km) of pipelines carry natural gas to more than 75 million customers. With the benefits of pipelines come the risks to health and property posed by leaks and explosions. Proposals for new and recommissioned pipelines challenge host communities with uncertainty and di fficult decisions about risk management. The appropriate community response depends on the risk level, the potential cost, and the prospect for compensation in the event of an incident. This article provides information on the risks and expected costs of pipeline leaks and explosions in the United States, including the incident rates, risk factors, and magnitude of harm. Although aggregated data on pipeline incidents are available, broadly inclusive data do not serve the needs of communities that must make critical decisions about hosting a pipeline for natural gas transmission. This article breaks down the data relevant to such communities and omits incidents that occurred o ffshore or as part of gas gathering or local distribution. The article then explains possible approaches to risk managemen<sup>t</sup> relevant to communities, pipeline companies, and policymakers.

**Keywords:** natural gas; transmission; pipelines; external cost; health; property damage; bodily injury; uncertainty; insurance
