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Who bears the cost of renewable power transmission lines? Evidence from housing values

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  • Harleman, Max

Abstract

Expanding renewable electricity generation in the U.S. requires investment in transmission lines to connect areas rich in wind and solar resources to population centers. But several recent transmission projects have been delayed or canceled because they faced fierce opposition from residents along proposed routes. This paper examines the Competitive Renewable Energy Zones (CREZ) in Texas, one of the largest transmission investment projects in U.S. history. It finds that the majority of affected properties (63 percent) are not crossed by the lines, and therefore their owners do not receive compensation from utilities. The values of these properties within 0.5 km but not crossed by the lines decreased by up to 10 percent on average within three years of construction. In aggregate, uncompensated losses borne by the properties’ owners are less than 4 percent of what it cost to construct CREZ, suggesting that fully compensating affected landowners when siting transmission projects would entail a small cost increase that could limit local opposition.

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  • Harleman, Max, 2024. "Who bears the cost of renewable power transmission lines? Evidence from housing values," Energy Policy, Elsevier, vol. 191(C).
    • Handle: RePEc:eee:enepol:v:191:y:2024:i:c:s030142152400199x
    DOI: 10.1016/j.enpol.2024.114179
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    References listed on IDEAS

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