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Power Lines, Visual Encumbrance and House Values: A Microspatial Approach to Impact Measurement

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  • Francois Des Rosiers

    () (Laval University, Canada)

Abstract

This research looks at the impact of high-voltage transmission lines (HVTL) on surrounding property values, using a microspatial approach. It is based on a sample of 507 single-family houses sold over the 1991–96 period in the City of Brossard, in the Greater Montreal area, Canada. Findings suggest that although severe visual encumbrance due to a direct view on a pylon or conductors does exert a significantly negative impact on property prices with depreciations ranging from 5% to well in excess of 20%, being adjacent to the easement will not necessarily cause a house to depreciate and may even increase its value in similar proportions where proximity advantages exceed drawbacks.

Suggested Citation

  • Francois Des Rosiers, 2002. "Power Lines, Visual Encumbrance and House Values: A Microspatial Approach to Impact Measurement," Journal of Real Estate Research, American Real Estate Society, vol. 23(3), pages 275-302.
  • Handle: RePEc:jre:issued:v:23:n:3:2002:p:275-302
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2008. "Valuation of Environmental Goods in Profit and Non-Profit Housing Sectors: Evidence from the Rental Market in the City of Zurich," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 144(IV), pages 631-654, December.
    2. repec:eee:eneeco:v:65:y:2017:i:c:p:326-334 is not listed on IDEAS
    3. McNair, Ben J. & Bennett, Jeff & Hensher, David A., 2011. "A comparison of responses to single and repeated discrete choice questions," Resource and Energy Economics, Elsevier, vol. 33(3), pages 554-571, September.
    4. Giaccaria Sergio & Frontuto Vito & Dalmazzone Silvana, 2010. "Who’s afraid of power lines? Merging survey and GIS data to account for spatial heterogeneity," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201002, University of Turin.
    5. repec:bla:presci:v:96:y:2017:i:2:p:423-444 is not listed on IDEAS
    6. repec:eee:enepol:v:111:y:2017:i:c:p:137-147 is not listed on IDEAS
    7. Bartczak, Anna & Chilton, Susan & Czajkowski, Mikołaj & Meyerhoff, Jürgen, 2017. "Gain and loss of money in a choice experiment. The impact of financial loss aversion and risk preferences on willingness to pay to avoid renewable energy externalities," Energy Economics, Elsevier, vol. 65(C), pages 326-334.
    8. Mense, Andreas & Wirth, Benjamin, 2014. "Flat Prices, Cell Phone Base Stations, and Network Structure: An Instrumental Variable Approach to Endogenous Locations," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100618, Verein für Socialpolitik / German Economic Association.
    9. Cohen, Jed J. & Moeltner, Klaus & Reichl, Johannes & Schmidthaler, Michael, 2016. "Linking the value of energy reliability to the acceptance of energy infrastructure: Evidence from the EU," Resource and Energy Economics, Elsevier, vol. 45(C), pages 124-143.
    10. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2012. "Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 387-397, January.
    11. repec:spr:envpol:v:20:y:2018:i:1:d:10.1007_s10018-017-0190-9 is not listed on IDEAS
    12. Olivier JOALLAND & Tina RAMBONILAZA, 2017. "Assessing the impact of renewable energy infrastructure on the “tourist value” in rural landscapes: a spatial hedonic approach," Cahiers du GREThA 2017-10, Groupe de Recherche en Economie Théorique et Appliquée.
    13. Fenrick, Steve A. & Getachew, Lullit, 2012. "Cost and reliability comparisons of underground and overhead power lines," Utilities Policy, Elsevier, vol. 20(1), pages 31-37.
    14. Michael J. Seiler, 2014. "Measuring the Impact of Eminent Domain Partial Takings: A Behavioral Approach," International Real Estate Review, Asian Real Estate Society, vol. 17(2), pages 137-156.
    15. repec:ire:issued:v:20:n:02:2017:p:167-187 is not listed on IDEAS

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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