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The economics of visual disamenity reductions of offshore wind farms—Review and suggestions from an emerging field

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  • Ladenburg, Jacob
  • Lutzeyer, Sanja

Abstract

The offshore wind power generation market is currently experiencing large growth rates on a global scale and investments exceeding several billion euro are being made. From a welfare economic point of view there is a non-trivial economic trade-off between offshore wind generation costs and the visual impacts from offshore wind farms. Offshore wind farms close to the shore generate cheaper electricity, but also cause higher levels of visual impacts compared to locations at larger distances. In the present paper we carry out a review of the stated preference studies that have elicited the demand for visual disamenity reduction from offshore wind farms. The review has three objectives: (a) to present the results of the different surveys; (b) to explore the more technical parts of the different surveys; and (c) to present the frontiers in the assessment of the demand for visual disamenity reductions associated with offshore wind farm locations. The paper is based on the results from five different studies. The review indicates that locations of offshore wind farms which are close to the shore generate significant welfare losses and that these can be reduced by locating the wind farms at more distant locations. The results also show that the welfare economic costs vary in terms of a range of socio demographic characteristics, experience with wind turbines and recreational activities. Finally, the review suggests that the welfare impacts related to the spatial distribution of the wind farms, intergenerational effects and experience with wind turbines are potential areas that would be beneficial to explore in future studies.

Suggested Citation

  • Ladenburg, Jacob & Lutzeyer, Sanja, 2012. "The economics of visual disamenity reductions of offshore wind farms—Review and suggestions from an emerging field," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(9), pages 6793-6802.
  • Handle: RePEc:eee:rensus:v:16:y:2012:i:9:p:6793-6802
    DOI: 10.1016/j.rser.2012.08.017
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    Cited by:

    1. Mirasgedis, S. & Tourkolias, C. & Tzovla, E. & Diakoulaki, D., 2014. "Valuing the visual impact of wind farms: An application in South Evia, Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 296-311.
    2. Farrell, Niall & Devine, Mel, 2015. "How do External Costs affect Pay-as-bid Renewable Energy Connection Auctions?," Papers WP517, Economic and Social Research Institute (ESRI).
    3. Ladenburg, Jacob, 2014. "Dynamic properties of the preferences for renewable energy sources – A wind power experience-based approach," Energy, Elsevier, vol. 76(C), pages 542-551.
    4. Lauren Knapp & Jacob Ladenburg, 2015. "How Spatial Relationships Influence Economic Preferences for Wind Power—A Review," Energies, MDPI, Open Access Journal, vol. 8(6), pages 1-25, June.
    5. Brennan, Noreen & Van Rensburg, Thomas M, 2016. "Wind farm externalities and public preferences for community consultation in Ireland: A discrete choice experiments approach," Energy Policy, Elsevier, vol. 94(C), pages 355-365.
    6. Perveen, Rehana & Kishor, Nand & Mohanty, Soumya R., 2014. "Off-shore wind farm development: Present status and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 780-792.
    7. Hall, Damon M. & Lazarus, Eli D., 2015. "Deep waters: Lessons from community meetings about offshore wind resource development in the U.S," Marine Policy, Elsevier, vol. 57(C), pages 9-17.
    8. repec:gam:jsusta:v:10:y:2018:i:1:p:208-:d:127158 is not listed on IDEAS
    9. Simona Bigerna & Paolo Polinori, 2015. "Assessing the Determinants of Renewable Electricity Acceptance Integrating Meta-Analysis Regression and a Local Comprehensive Survey," Sustainability, MDPI, Open Access Journal, vol. 7(9), pages 1-24, August.
    10. Chiang, Amy C. & Keoleian, Gregory A. & Moore, Michael R. & Kelly, Jarod C., 2016. "Investment cost and view damage cost of siting an offshore wind farm: A spatial analysis of Lake Michigan," Renewable Energy, Elsevier, vol. 96(PA), pages 966-976.
    11. Sascha Samadi, 2017. "The Social Costs of Electricity Generation—Categorising Different Types of Costs and Evaluating Their Respective Relevance," Energies, MDPI, Open Access Journal, vol. 10(3), pages 1-37, March.
    12. Ladenburg, Jacob & Termansen, Mette & Hasler, Berit, 2013. "Assessing acceptability of two onshore wind power development schemes: A test of viewshed effects and the cumulative effects of wind turbines," Energy, Elsevier, vol. 54(C), pages 45-54.
    13. repec:gam:jeners:v:10:y:2017:i:10:p:1512-:d:113660 is not listed on IDEAS

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