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The Effect of Undesirable Land Use Facilities on Property Values: New Evidence from Australian Regional Fossil-Fired Plants

Author

Listed:
  • Renuka K. Ganegodage

    (School of Economics, The University of Queensland, St Lucia, Brisbane, Australia)

  • Peyman Khezr

    (School of Economics, The University of Queensland, St Lucia, Brisbane, Australia)

  • Rabindra Nepal

    (CDU Business School, Charles Darwin University, Darwin, Australia)

Abstract

This paper investigates the effect of fossil-fired power plants on the value of neighborhood properties in the state of New South Wales, Australia. Fossil-fuels accounts for significant proportion of electricity generation in Australia. Thus, there are growing community concerns regarding the possible negative environmental effects of these power plants given the high level of emission produced by these plants. We use a comprehensive data with the exact location of each property to estimate the effect of an existing fossil-fuel power plant on the value of neighborhood properties. We use spatial econometric models to estimate these effects with controls over several characteristics of properties. Our results suggest that coal-fired power plants have significant negative effects on property values within a specific radius. These effects are less but still negative for gas and gas reciprocating power plants.

Suggested Citation

  • Renuka K. Ganegodage & Peyman Khezr & Rabindra Nepal, 2016. "The Effect of Undesirable Land Use Facilities on Property Values: New Evidence from Australian Regional Fossil-Fired Plants," Discussion Papers Series 569, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uq2004:569
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    File URL: https://economics.uq.edu.au/files/46180/569.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Fossil-fired; power plants; emissions; property price;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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