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Perceived Externalities of Cell Phone Base Stations – The Case of Property Prices in Hamburg, Germany

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Author Info

  • Sebastian Brandt

    ()
    (Chair for Economic Policy, University of Hamburg)

  • Wolfgang Maennig

    ()
    (Chair for Economic Policy, University of Hamburg)

Abstract

We examine the impact of cell phone base stations on prices of condominiums in Hamburg, Germany. This is the first hedonic pricing study on this subject for real estates in Europe and the first worldwide which examines the price impact of base stations within a whole metropolis. We distinguish between individual masts and groups of masts. Based on a data set of over 1,000 base stations set up in Hamburg, we find that only immediate proximity to groups of antenna masts is perceived as harmful by residents of nearby condominiums. For individual masts, however, no effect on residential property prices in the surrounding areas has been observed indicating that cell phone service providers should prevent installation of groups of masts in a single location. We control for spatial dependence and show that the influence of cell phone base stations on adjacent residential property prices can be overestimated, if other negative externalities that are typically correlated with the proximity to base stations are neglected.

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File URL: http://www.hced.uni-hamburg.de/WorkingPapers/HCED-039.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Chair for Economic Policy, University of Hamburg in its series Working Papers with number 039.

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Length: 28 pages
Date of creation: 12 Nov 2010
Date of revision:
Publication status: Published in Hamburg Contemporary Economic Discussions, Issue 39, 2010
Handle: RePEc:hce:wpaper:039

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Related research

Keywords: Keywords: Cell Phone Base Stations; Eternalities; Residential Property Prices; Hamburg;

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References

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  1. Arne Feddersen, 2006. "Economic Consequences of the UEFA Champions League for National Championships - The Case of Germany," Working Papers 0012006, Chair for Economic Policy, University of Hamburg.
  2. Arne Feddersen & Wolfgang Maennig, 2005. "Trends in Competitive Balance: Is there Evidence for Growing Imbalance in Professional Sport Leagues?," Working Papers 0012005, Chair for Economic Policy, University of Hamburg.
  3. Wolfgang Maennig & Florian Schwarthoff, 2008. "Stadium Architecture and Regional Economic Development: International Experience and the Plans of Durban," Working Papers 0816, International Association of Sports Economists & North American Association of Sports Economists.
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Cited by:
  1. Gorecki, Paul & Hennessy, Hugh & Lyons, Sean, 2011. "How impact fees and local planning regulation can influence deployment of telecoms infrastructure," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52160, International Telecommunications Society (ITS).

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