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Power Lines and Land Value

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Author Info
Peter F. Colwell (Office of Real Estate Research University of Illinois at Urbana-Champaign 1407 W. Gregory Dr. 304 DKH Urbana, Illinois 61801)
Abstract

This study attempts to detect whether power lines, power line towers, or both have an impact on the selling price of proximate residential land and to measure the magnitude of these impacts if they exist. Secondly, it attempts to determine whether any impact which is found to exist is diminished through time possibly as the growth of trees obscures the view of towers and lines, as attitudes change, or as uncertainty about the effects diminishes. Finally, the extent to which the impact extends beyond lots with an easement is considered. Throughout, the focus is on the value of land even though the use of developed property sales would ordinarily preclude such a focus. The approach is that of a hedonic price index in which selling price is Cobb-Douglas function of a number of property characteristics with land area being just one of the characteristics. By shifting the other property characteristic variables, it is possible to obtain predictions of land value alone.

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File URL: http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol05n01/v05p117.pdf
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Publisher Info
Article provided by American Real Estate Society in its journal Journal of Real Estate Research.

Volume (Year): 5 (1990)
Issue (Month): 1 ()
Pages: 117-128
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Handle: RePEc:jre:issued:v:5:n:1:1990:p:117-128

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Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
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Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
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Find related papers by JEL classification:
L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

Cited by:
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  1. Robert A. Simons & William Bowen & Arthur Sementell, 1997. "The Effect of Underground Storage Tanks on Residential Property Values in Cuyahoga County, Ohio," Journal of Real Estate Research, American Real Estate Society, vol. 14(1), pages 29-42. [Downloadable!]
  2. Jörgen Johansson & Krister Sandberg, 2001. "Hedonic Prices for Co-operative Flats in the City of Umeå estimated with Spatial Autoregressive GMM," ERSA conference papers ersa01p111, European Regional Science Association. [Downloadable!]
  3. Sandberg, Krister, 2002. "On Space-Time Changes of Hedonic Prices for Single Family Houses," ERSA conference papers ersa02p196, European Regional Science Association. [Downloadable!]
  4. Su Han Chan & Shin-Hering Michelle Chu & George H. Lentz & Ko Wang, 1998. "Intra-Project Externality and Layout Variables in Residential Condominium Appraisals," Journal of Real Estate Research, American Real Estate Society, vol. 15(2), pages 131-146. [Downloadable!]
  5. Marvin L. Wolverton, 1998. "Empirical Investigation into the Limitations of the Normative Paired Sales Adjustment Method," Journal of Real Estate Research, American Real Estate Society, vol. 15(2), pages 191-204. [Downloadable!]
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