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Visual Disamenity in the Queensland Wet Tropics: Estimating the Economic Impacts of Overhead Transmission Lines

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  • Harrison, Steve

    (University of Queensland)

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    Abstract

    This paper examines procedures and findings in estimation of the "visual disamenity cost" associated with installation of high-voltage overhead power lines in the Wet Tropics of Queensland. The study was performed within a short timeframe and small budget, hence the need to design a relatively simple and cost-effective approach, yet one which would yield acceptable information on environmental values. An extensive literature review and advice from a number of resource economists indicated that there was little information from previous studies to support benefit transfer methodology. It was found possible to estimate disamenity costs to ecotourism operation (using a simplified travel cost approach), agricultural operations (based on compensation payments) and residential property values (through a simplified hedonic price approach). A planned contingent valuation of the intrusive effect of the transmission lines through rainforest areas did not proceed, due at least in part to the political sensitivity of this issue.

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    Bibliographic Info

    Article provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).

    Volume (Year): 32 (2002)
    Issue (Month): 2 (June Special Issue)
    Pages: 173-188

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    Handle: RePEc:eap:articl:v:32:y:2002:i:2:p:173-188

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    Keywords: Resources;

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    1. Rowe, Robert D. & D'Arge, Ralph C. & Brookshire, David S., 1980. "An experiment on the economic value of visibility," Journal of Environmental Economics and Management, Elsevier, vol. 7(1), pages 1-19, March.
    2. Brookshire, David S. & Ives, Berry C. & Schulze, William D., 1976. "The valuation of aesthetic preferences," Journal of Environmental Economics and Management, Elsevier, vol. 3(4), pages 325-346, December.
    3. Guy Garrod & Ken Willis, 1998. "Using Contingent Ranking to Estimate the Loss of Amenity Value for Inland Waterways from Public Utility Service Structures," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(2), pages 241-247, September.
    4. Randall, Alan & Ives, Berry & Eastman, Clyde, 1974. "Bidding games for valuation of aesthetic environmental improvements," Journal of Environmental Economics and Management, Elsevier, vol. 1(2), pages 132-149, August.
    5. Thomas G. Thibodeau, 1990. "Estimating the Effect of High-Rise Office Buildings on Residential Property Values," Land Economics, University of Wisconsin Press, vol. 66(4), pages 402-408.
    6. Smith, V Kerry & Desvousges, William H, 1986. "The Value of Avoiding a Lulu: Hazardous Waste Disposal Sites," The Review of Economics and Statistics, MIT Press, vol. 68(2), pages 293-99, May.
    7. Thayer, Mark A., 1981. "Contingent valuation techniques for assessing environmental impacts: Further evidence," Journal of Environmental Economics and Management, Elsevier, vol. 8(1), pages 27-44, March.
    8. C Price, 1976. "Subjectivity and objectivity in landscape evaluation," Environment and Planning A, Pion Ltd, London, vol. 8(7), pages 829-838, July.
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    Cited by:
    1. Curtis, Ian A., 2004. "Valuing ecosystem goods and services: a new approach using a surrogate market and the combination of a multiple criteria analysis and a Delphi panel to assign weights to the attributes," Ecological Economics, Elsevier, vol. 50(3-4), pages 163-194, October.

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