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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.

Suggested Citation

  • 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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    Cited by:

    1. Voltaire, Louinord & Koutchade, Obafèmi Philippe, 2020. "Public acceptance of and heterogeneity in behavioral beach trip responses to offshore wind farm development in Catalonia (Spain)," Resource and Energy Economics, Elsevier, vol. 60(C).
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    3. Carr-Harris, Andrew & Lang, Corey, 2019. "Sustainability and tourism: the effect of the United States’ first offshore wind farm on the vacation rental market," Resource and Energy Economics, Elsevier, vol. 57(C), pages 51-67.
    4. Anders Dugstad & Kristine Grimsrud & Gorm Kipperberg & Henrik Lindhjem & Ståle Navrud, 2020. "Acceptance of national wind power development and exposure. A case-control choice experiment approach," Discussion Papers 933, Statistics Norway, Research Department.
    5. Parsons, George & Firestone, Jeremy & Yan, Lingxiao & Toussaint, Jenna, 2020. "The effect of offshore wind power projects on recreational beach use on the east coast of the United States: Evidence from contingent-behavior data," Energy Policy, Elsevier, vol. 144(C).
    6. Ladenburg, Jacob & Hevia-Koch, Pablo & Petrović, Stefan & Knapp, Lauren, 2020. "The offshore-onshore conundrum: Preferences for wind energy considering spatial data in Denmark," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    7. Peri, Erez & Becker, Nir & Tal, Alon, 2020. "What really undermines public acceptance of wind turbines? A choice experiment analysis in Israel," Land Use Policy, Elsevier, vol. 99(C).
    8. Boyle, Kevin J. & Boatwright, Jessica & Brahma, Sreeya & Xu, Weibin, 2019. "NIMBY, not, in siting community wind farms," Resource and Energy Economics, Elsevier, vol. 57(C), pages 85-100.

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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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