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Who’s afraid of power lines? Merging survey and GIS data to account for spatial heterogeneity

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  • Giaccaria Sergio

    ()

  • Frontuto Vito

    ()

  • Dalmazzone Silvana

    ()
    (University of Turin)

Abstract

The study offers a comprehensive assessment of the externalities produced by High Voltage Transmission Lines as perceived by residents in the infrastructure corridors. A GIS approach has been experimented in the sampling design of a CV survey in order to obtain additional information about the local context within which impacts are perceived and to take into account the spatial specificity of the external effects. We estimate, by means of a double-boundedlogit model, the marginal damage from human health, landscape and environmental effects. We differentiate the analyses with separate bid designs for households in close proximity to the lines, affected by a depreciation of their real estate property values, and for all other respondents affected by generic forms of damage linked to visual encumbrance. A significant explanatory contribution in the modelled utility functions of resident households is given by the implementation of GIS-based variables, such as the proximity to power lines, built as a distance decay indicator, and local context features such as density of power lines, presence of other linear infrastructures, and local environmental amenity.

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Bibliographic Info

Paper provided by University of Turin in its series Department of Economics and Statistics Cognetti de Martiis. Working Papers with number 201002.

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Length: 20 pages
Date of creation: Jan 2010
Date of revision:
Handle: RePEc:uto:dipeco:201002

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  1. Riccardo Scarpa & Ian Bateman, 2000. "Efficiency Gains Afforded by Improved Bid Design versus Follow-up Valuation Questions in Discrete-Choice CV Studies," Land Economics, University of Wisconsin Press, vol. 76(2), pages 299-311.
  2. Hoehn, John P. & Randall, Alan, 2002. "The effect of resource quality information on resource injury perceptions and contingent values," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 13-31, February.
  3. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
  4. Robert J. Johnston & RStephen K. Swallow & Dana Marie Bauer, 2002. "Spatial Factors and Stated Preference Values for Public Goods: Considerations for Rural Land Use," Land Economics, University of Wisconsin Press, vol. 78(4), pages 481-500.
  5. Francois Des Rosiers, 2002. "Power Lines, Visual Encumbrance and House Values: A Microspatial Approach to Impact Measurement," Journal of Real Estate Research, American Real Estate Society, vol. 23(3), pages 275-302.
  6. Barbara J. Kanninen & M. Sami Khawaja, 1999. "Measuring Goodness of Fit for the Double-Bounded Logit Model: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 238-240.
  7. Stanley W. Hamilton & Gregory M. Schwann, 1995. "Do High Voltage Electric Transmission Lines Affect Property Value?," Land Economics, University of Wisconsin Press, vol. 71(4), pages 436-444.
  8. Paul Gallimore & Michael RossJayne, 1999. "Public and professional perceptions of HVOTL risks: the problem of circularity," Journal of Property Research, Taylor & Francis Journals, vol. 16(3), pages 243-255, January.
  9. Joseph A. Herriges, 1999. "Measuring Goodness of Fit for the Double-Bounded Logit Model: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 231-234.
  10. Jennifer Tkac, 1998. "The Effects of Information on Willingness-to-Pay Values of Endangered Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1214-1220.
  11. Timothy Park & John B. Loomis & Michael Creel, 1991. "Confidence Intervals for Evaluating Benefits Estimates from Dichotomous Choice Contingent Valuation Studies," Land Economics, University of Wisconsin Press, vol. 67(1), pages 64-73.
  12. David A. Harpman & Michael P. Welsh, 1999. "Measuring Goodness of Fit for the Double-Bounded Logit Model: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 235-237.
  13. Dupont, Diane P., 2004. "Do children matter? An examination of gender differences in environmental valuation," Ecological Economics, Elsevier, vol. 49(3), pages 273-286, July.
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