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Wind turbines, solar farms, and house prices

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  • Dröes, Martijn I.
  • Koster, Hans R.A.

Abstract

This paper examines the effect of wind turbines and solar farms on house prices. Using detailed data from the Netherlands between 1985 and 2019, the results show that tall wind turbines have considerably stronger effects on house prices, as compared to small turbines. For example, a tall turbine (>150m) decreases house prices within 2 km by 5.4%, while a small turbine (<50m) has an effect of maximally 2% and the effect dissipates after 1 km. Further results indicate that solar farms lead to a decrease in house prices within 1 km of about 2.6%. By comparing the overall impact on house prices, we show that the external effects of solar farms per unit of energy output are comparable to those of wind turbines. Thus, building solar farms instead of wind turbines does not seem to be a way to avoid the external effects of renewable energy production.

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  • Dröes, Martijn I. & Koster, Hans R.A., 2021. "Wind turbines, solar farms, and house prices," Energy Policy, Elsevier, vol. 155(C).
    • Handle: RePEc:eee:enepol:v:155:y:2021:i:c:s0301421521001968
    DOI: 10.1016/j.enpol.2021.112327
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    Cited by:

    1. Wehrle, Sebastian & Gruber, Katharina & Schmidt, Johannes, 2021. "The cost of undisturbed landscapes," Energy Policy, Elsevier, vol. 159(C).
    2. Lehmann, Paul & Reutter, Felix & Tafarte, Philip, 2023. "Optimal siting of onshore wind turbines: Local disamenities matter," Resource and Energy Economics, Elsevier, vol. 74(C).
    3. Elmallah, Salma & Hoen, Ben & Fujita, K. Sydny & Robson, Dana & Brunner, Eric, 2023. "Shedding light on large-scale solar impacts: An analysis of property values and proximity to photovoltaics across six U.S. states," Energy Policy, Elsevier, vol. 175(C).
    4. Forsberg, Charles, 2023. "What is the long-term demand for liquid hydrocarbon fuels and feedstocks?," Applied Energy, Elsevier, vol. 341(C).
    5. Oto-Peralías, Daniel & Cuberes, David, 2023. "Land Concentration and Mega Photovoltaic Plants," OSF Preprints hakt5, Center for Open Science.
    6. 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).
    7. 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).

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    More about this item

    Keywords

    Wind turbines; Solar farms; House prices;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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