IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v64y2019icp248-258.html
   My bibliography  Save this article

Implementing hedonic pricing models for valuing the visual impact of wind farms in Greece

Author

Listed:
  • Skenteris, Konstantinos
  • Mirasgedis, Sevastianos
  • Tourkolias, Christos

Abstract

Although wind energy is a pollution-free and infinitely sustainable form of energy, there is considerable concern over certain environmental effects resulting from its development. Criticism focuses primarily on the visual impact of wind turbines and transmission lines, which may result in perceived deterioration of the landscape and also harm other economic activities such as tourism and real estate. This study applies the hedonic pricing method to estimate the value of environmental externalities associated with large-scale exploitation of wind power at a local level. It examines the characteristics of approximately 1,800 sales of single-family homes surrounding 17 existing wind facilities in two Greek islands, namely Evia and Kefalonia. Four different hedonic price models are developed and applied, with diverging results in the two areas. We find that in Evia, the per unit floor area sales price decreased for dwellings located within a 2 km radius of the wind farms, while in Kefalonia, the distance of the house to the wind turbines had no statistically significant effect on the sales price.

Suggested Citation

  • Skenteris, Konstantinos & Mirasgedis, Sevastianos & Tourkolias, Christos, 2019. "Implementing hedonic pricing models for valuing the visual impact of wind farms in Greece," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 248-258.
    • Handle: RePEc:eee:ecanpo:v:64:y:2019:i:c:p:248-258
    DOI: 10.1016/j.eap.2019.09.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592619300347
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2019.09.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jensen, Cathrine Ulla & Panduro, Toke Emil & Lundhede, Thomas Hedemark & Nielsen, Anne Sofie Elberg & Dalsgaard, Mette & Thorsen, Bo Jellesmark, 2018. "The impact of on-shore and off-shore wind turbine farms on property prices," Energy Policy, Elsevier, vol. 116(C), pages 50-59.
    2. Koundouri, Phoebe & Kountouris, Yiannis & Remoundou, Kyriaki, 2009. "Valuing a wind farm construction: A contingent valuation study in Greece," Energy Policy, Elsevier, vol. 37(5), pages 1939-1944, May.
    3. Westerberg, Vanja & Jacobsen, Jette Bredahl & Lifran, Robert, 2013. "The case for offshore wind farms, artificial reefs and sustainable tourism in the French mediterranean," Tourism Management, Elsevier, vol. 34(C), pages 172-183.
    4. Dimitropoulos, Alexandros & Kontoleon, Andreas, 2009. "Assessing the determinants of local acceptability of wind-farm investment: A choice experiment in the Greek Aegean Islands," Energy Policy, Elsevier, vol. 37(5), pages 1842-1854, May.
    5. Mirasgedis, S. & Tourkolias, C. & Tzovla, E. & Diakoulaki, D., 2014. "Valuing the visual impact of wind farms: An application in South Evia, Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 296-311.
    6. Manchado, Cristina & Otero, César & Gómez-Jáuregui, Valentín & Arias, Rubén & Bruschi, Viola & Cendrero, Antonio, 2013. "Visibility analysis and visibility software for the optimisation of wind farm design," Renewable Energy, Elsevier, vol. 60(C), pages 388-401.
    7. Betakova, Vendula & Vojar, Jiri & Sklenicka, Petr, 2015. "Wind turbines location: How many and how far?," Applied Energy, Elsevier, vol. 151(C), pages 23-31.
    8. Heintzelman, Martin D. & Vyn, Richard J. & Guth, Sarah, 2017. "Understanding the Amenity Impacts of Wind Development on an International Border," Ecological Economics, Elsevier, vol. 137(C), pages 195-206.
    9. Martin D. Heintzelman & Carrie M. Tuttle, 2012. "Values in the Wind: A Hedonic Analysis of Wind Power Facilities," Land Economics, University of Wisconsin Press, vol. 88(3), pages 571-588.
    10. Ladenburg, Jacob & Dubgaard, Alex, 2007. "Willingness to pay for reduced visual disamenities from offshore wind farms in Denmark," Energy Policy, Elsevier, vol. 35(8), pages 4059-4071, August.
    11. Tabassum-Abbasi, & Premalatha, M. & Abbasi, Tasneem & Abbasi, S.A., 2014. "Wind energy: Increasing deployment, rising environmental concerns," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 270-288.
    12. Wang, Shifeng & Wang, Sicong, 2015. "Impacts of wind energy on environment: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 437-443.
    13. Ben Hoen & Ryan Wiser & Peter Cappers & Mark Thayer & Gautam Sethi, 2011. "Wind Energy Facilities and Residential Properties: The Effect of Proximity and View on Sales Prices," Journal of Real Estate Research, American Real Estate Society, vol. 33(3), pages 279-316.
    14. Kontogianni, A. & Tourkolias, Ch. & Skourtos, M. & Damigos, D., 2014. "Planning globally, protesting locally: Patterns in community perceptions towards the installation of wind farms," Renewable Energy, Elsevier, vol. 66(C), pages 170-177.
    15. Tsoutsos, Theocharis & Tsouchlaraki, Androniki & Tsiropoulos, Manolis & Serpetsidakis, Michalis, 2009. "Visual impact evaluation of a wind park in a Greek island," Applied Energy, Elsevier, vol. 86(4), pages 546-553, April.
    16. Sklenicka, Petr & Zouhar, Jan, 2018. "Predicting the visual impact of onshore wind farms via landscape indices: A method for objectivizing planning and decision processes," Applied Energy, Elsevier, vol. 209(C), pages 445-454.
    17. Bergmann, Ariel & Hanley, Nick & Wright, Robert, 2006. "Valuing the attributes of renewable energy investments," Energy Policy, Elsevier, vol. 34(9), pages 1004-1014, June.
    18. Dai, Kaoshan & Bergot, Anthony & Liang, Chao & Xiang, Wei-Ning & Huang, Zhenhua, 2015. "Environmental issues associated with wind energy – A review," Renewable Energy, Elsevier, vol. 75(C), pages 911-921.
    19. Ben Hoen & Jason Brown & Thomas Jackson & Mark Thayer & Ryan Wiser & Peter Cappers, 2015. "Spatial Hedonic Analysis of the Effects of US Wind Energy Facilities on Surrounding Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 51(1), pages 22-51, July.
    20. Lauren Knapp & Jacob Ladenburg, 2015. "How Spatial Relationships Influence Economic Preferences for Wind Power—A Review," Energies, MDPI, vol. 8(6), pages 1-25, June.
    21. Lang, Corey & Opaluch, James J. & Sfinarolakis, George, 2014. "The windy city: Property value impacts of wind turbines in an urban setting," Energy Economics, Elsevier, vol. 44(C), pages 413-421.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dröes, Martijn I. & Koster, Hans R.A., 2021. "Wind turbines, solar farms, and house prices," Energy Policy, Elsevier, vol. 155(C).
    2. Hans Westlund & Mats Wilhelmsson, 2021. "The Socio-Economic Cost of Wind Turbines: A Swedish Case Study," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
    3. Joalland, Olivier & Mahieu, Pierre-Alexandre, 2023. "Developing large-scale offshore wind power programs: A choice experiment analysis in France," Ecological Economics, Elsevier, vol. 204(PA).
    4. Joly, Machteld & De Jaeger, Simon, 2021. "Not in my backyard: A hedonic approach to the construction timeline of wind turbines in Flanders, Belgium," Land Use Policy, Elsevier, vol. 108(C).
    5. Halkos, George & Managi, Shunsuke, 2023. "New developments in the disciplines of environmental and resource economics," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 513-522.
    6. Jan von Detten & Johann V. Seebaß & Jan C. Schlüter & Florian Hackelberg, 2023. "Influence of onshore wind turbines on land values [Einfluss von Onshore-Windenergieanlagen auf den Grundstückswert]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 9(1), pages 63-80, April.
    7. Lehmann, Paul & Reutter, Felix & Tafarte, Philip, 2023. "Optimal siting of onshore wind turbines: Local disamenities matter," Resource and Energy Economics, Elsevier, vol. 74(C).
    8. Rajapaksa, Darshana & Gono, Marcel & Wilson, Clevo & Managi, Shunsuke & Lee, Boon & Hoang, Viet-Ngu, 2020. "The demand for education: The impacts of good schools on property values in Brisbane, Australia," Land Use Policy, Elsevier, vol. 97(C).
    9. Hanna Szumilas-Kowalczyk & Renata Giedych, 2022. "Analysis of Regulatory Possibilities and Obstacles to Expand Renewable Energy and Preserve Landscape Quality in the Silesian Voivodship," Resources, MDPI, vol. 11(2), pages 1-32, February.
    10. Vassiliki Vlami & Jan Danek & Stamatis Zogaris & Eirini Gallou & Ioannis P. Kokkoris & George Kehayias & Panayotis Dimopoulos, 2020. "Residents’ Views on Landscape and Ecosystem Services during a Wind Farm Proposal in an Island Protected Area," Sustainability, MDPI, vol. 12(6), pages 1-18, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peri, Erez & Becker, Nir & Tal, Alon, 2020. "What really undermines public acceptance of wind turbines? A choice experiment analysis in Israel," Land Use Policy, Elsevier, vol. 99(C).
    2. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    3. Boyle, Kevin J. & Boatwright, Jessica & Brahma, Sreeya & Xu, Weibin, 2019. "NIMBY, not, in siting community wind farms," Resource and Energy Economics, Elsevier, vol. 57(C), pages 85-100.
    4. Mirasgedis, S. & Tourkolias, C. & Tzovla, E. & Diakoulaki, D., 2014. "Valuing the visual impact of wind farms: An application in South Evia, Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 296-311.
    5. Sardaro, Ruggiero & Faccilongo, Nicola & Roselli, Luigi, 2019. "Wind farms, farmland occupation and compensation: Evidences from landowners’ preferences through a stated choice survey in Italy," Energy Policy, Elsevier, vol. 133(C).
    6. Lauren Knapp & Jacob Ladenburg, 2015. "How Spatial Relationships Influence Economic Preferences for Wind Power—A Review," Energies, MDPI, vol. 8(6), pages 1-25, June.
    7. Brennan, Noreen & van Rensburg, Thomas M., 2020. "Public preferences for wind farms involving electricity trade and citizen engagement in Ireland," Energy Policy, Elsevier, vol. 147(C).
    8. Thomson, Heather & Kempton, Willett, 2018. "Perceptions and attitudes of residents living near a wind turbine compared with those living near a coal power plant," Renewable Energy, Elsevier, vol. 123(C), pages 301-311.
    9. Dong, Luran & Lang, Corey, 2022. "Do views of offshore wind energy detract? A hedonic price analysis of the Block Island wind farm in Rhode Island," Energy Policy, Elsevier, vol. 167(C).
    10. Olivier JOALLAND & Tina RAMBONILAZA, 2017. "Assessing the impact of renewable energy infrastructure on the “tourist value” in rural landscapes: a spatial hedonic approach," Cahiers du GREThA (2007-2019) 2017-10, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    11. Carr-Harris, Andrew & Lang, Corey, 2019. "Sustainability and tourism: the effect of the United States’ first offshore wind farm on the vacation rental market," Resource and Energy Economics, Elsevier, vol. 57(C), pages 51-67.
    12. Hans Westlund & Mats Wilhelmsson, 2021. "The Socio-Economic Cost of Wind Turbines: A Swedish Case Study," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
    13. Picchi, Paolo & van Lierop, Martina & Geneletti, Davide & Stremke, Sven, 2019. "Advancing the relationship between renewable energy and ecosystem services for landscape planning and design: A literature review," Ecosystem Services, Elsevier, vol. 35(C), pages 241-259.
    14. Vassiliki Vlami & Jan Danek & Stamatis Zogaris & Eirini Gallou & Ioannis P. Kokkoris & George Kehayias & Panayotis Dimopoulos, 2020. "Residents’ Views on Landscape and Ecosystem Services during a Wind Farm Proposal in an Island Protected Area," Sustainability, MDPI, vol. 12(6), pages 1-18, March.
    15. Kim, Hyo-Jin & Kim, Ju-Hee & Yoo, Seung-Hoon, 2019. "Social acceptance of offshore wind energy development in South Korea: Results from a choice experiment survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    16. Olivier JOALLAND & Tina RAMBONILAZA, 2017. "Valeur touristique des aménités environnementales et nuisances associées aux infrastructures d’énergie renouvelable : une approche hédonique spatiale," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 46, pages 93-115.
    17. Brennan, Noreen & Van Rensburg, Thomas M, 2016. "Wind farm externalities and public preferences for community consultation in Ireland: A discrete choice experiments approach," Energy Policy, Elsevier, vol. 94(C), pages 355-365.
    18. Lehmann, Paul & Reutter, Felix & Tafarte, Philip, 2021. "Optimal siting of onshore wind turbines: Local disamenities matter," UFZ Discussion Papers 4/2021, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    19. Dong, Luran & Gaur, Vasundhara & Lang, Corey, 2023. "Property value impacts of onshore wind energy in New England: The importance of spatial heterogeneity and temporal dynamics," Energy Policy, Elsevier, vol. 179(C).
    20. Maria De Salvo & Sandra Notaro & Giuseppe Cucuzza & Laura Giuffrida & Giovanni Signorello, 2021. "Protecting the Local Landscape or Reducing Greenhouse Gas Emissions? A Study on Social Acceptance and Preferences towards the Installation of a Wind Farm," Sustainability, MDPI, vol. 13(22), pages 1-19, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:64:y:2019:i:c:p:248-258. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.