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Residential rent externalities of photovoltaic systems: The relevance of view

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  • Füss, Roland
  • Kürschner Rauck, Kathleen
  • Weigand, Alois

Abstract

In a three-dimensional topographic model of Switzerland, we study how the view at photovoltaic (PV) systems affects residential real estate. Our hedonic difference-in-differences regressions provide evidence that the view at a PV system is associated with lower residential rents. We consider different view types to examine amplifiers and attenuators of these negative externalities. Using municipal voting results and data on electric vehicles, we document causal pathways of the effect that align with stated and lived preferences for sustainability. Similar causal pathways of negative externalities are evident through municipalities’ solar energy production potential and their local demand elasticities for housing.

Suggested Citation

  • Füss, Roland & Kürschner Rauck, Kathleen & Weigand, Alois, 2025. "Residential rent externalities of photovoltaic systems: The relevance of view," Regional Science and Urban Economics, Elsevier, vol. 114(C).
  • Handle: RePEc:eee:regeco:v:114:y:2025:i:c:s0166046225000559
    DOI: 10.1016/j.regsciurbeco.2025.104138
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    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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