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The amenity costs of offshore wind farms: Evidence from a choice experiment

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  • Lutzeyer, Sanja
  • Phaneuf, Daniel J.
  • Taylor, Laura O.

Abstract

We conduct a choice-experiment with individuals that recently rented a vacation property along the North Carolina coastline to assess the impacts of a utility-scale wind farm on their rental decisions. Visualizations were presented to survey respondents that varied both the number of turbines and their proximity to shore. Results indicate that there is not a scenario for which respondents would be willing to pay more to rent a home with turbines in view, as compared to the baseline view with no turbines in sight. Further, there is a substantial portion of the survey population that would change their vacation destination if wind farms were placed within visual range of the beach. The rental discounts required to attract the segment of the survey population most amenable to viewing wind farms still indicate that rental value losses of up to 10% are possible if a utility-scale wind farm is placed within 8 miles of shore.

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  • Lutzeyer, Sanja & Phaneuf, Daniel J. & Taylor, Laura O., 2018. "The amenity costs of offshore wind farms: Evidence from a choice experiment," Energy Economics, Elsevier, vol. 72(C), pages 621-639.
    • Handle: RePEc:eee:eneeco:v:72:y:2018:i:c:p:621-639
    DOI: 10.1016/j.eneco.2018.03.020
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    More about this item

    Keywords

    Offshore wind farms; Choice experiment; Coastal rental markets; Latent class models;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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