Shale
gas pipeline development can have negative environmental
impacts, including adverse effects on species and ecosystems through
habitat degradation and loss. From a societal perspective, pipeline
development planning processes should account for such externalities.
We develop a multiobjective binary integer-programming model, called
the Multi Objective Pipeline Siting (MOPS) model, to incorporate habitat
externalities into pipeline development and to estimate the trade-offs
between pipeline development costs and habitat impacts. We demonstrate
the utility of the model using an application from Bradford and Susquehanna
counties in northeastern Pennsylvania. We find that significant habitat
impacts can be avoided for relatively low cost, but the avoidance
of the additional habitat impacts becomes gradually and increasingly
costly. For example, 10% of the habitat impacts can be avoided at
less than a two percent pipeline cost increase relative to a configuration
that ignores habitat impacts. MOPS or a similar model could be integrated
into the pipeline siting and permitting process so oil and gas companies,
communities, and states can identify cost-effective options for habitat
conservation near shale gas development.