Measuring the indirect costs associated with the establishment of a wind farm: An application of the Contingent Valuation Method
AbstractAlthough a green energy source, the location of electrical generating windmills may cause a disamenity effect (negative externality). The establishment of a wind farm is known as a locally undesirable land use (LULU) and leads to the not-in-my-backyard syndrome (NIMBY). In an application of the contingent valuation method, a willingness-to-accept framework was used to estimate the aggregate annual compensation required to allow the construction of a wind farm near Jeffreyâ€™s Bay, South Africa. This compensation amounted to R490 695. A binary choice logit analysis found that retirement status, concern about climate change, concern about view-shed impacts and the offer amount are important predictors of voting for or against the project.
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Bibliographic InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 258.
Length: 10 pages
Date of creation: 2011
Date of revision:
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Contingent Valuation Method; indirect cost; wind farm;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-12-13 (Agricultural Economics)
- NEP-ALL-2011-12-13 (All new papers)
- NEP-ENE-2011-12-13 (Energy Economics)
- NEP-ENV-2011-12-13 (Environmental Economics)
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