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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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    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. Andre Torre & Vu Hai Pham & Arnaud Simon, 2015. "The ex-ante impact of conflict over infrastructure settings on residential property values: The case of Paris’s suburban zones," Urban Studies, Urban Studies Journal Limited, vol. 52(13), pages 2404-2424, October.
    3. Yasin Sunak & Reinhard Madlener, 2017. "The impact of wind farms on property values: A locally weighted hedonic pricing model," Papers in Regional Science, Wiley Blackwell, vol. 96(2), pages 423-444, June.
    4. Mueller, Christoph Emanuel & Keil, Silke Inga & Bauer, Christian, 2017. "Effects of spatial proximity to proposed high-voltage transmission lines: Evidence from a natural experiment in Lower Saxony," Energy Policy, Elsevier, vol. 111(C), pages 137-147.
    5. Mense, Andreas & Wirth, Benjamin, 2014. "Flat Prices, Cell Phone Base Stations, and Network Structure: An Instrumental Variable Approach to Endogenous Locations," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100618, Verein für Socialpolitik / German Economic Association.
    6. Mueller, Christoph Emanuel, 2020. "Why do residents participate in high-voltage transmission line planning procedures? Findings from two power grid expansion regions in Germany," Energy Policy, Elsevier, vol. 145(C).
    7. 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.
    8. 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 (2007-2019) 2017-10, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    9. 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.
    10. Mueller, Christoph Emanuel, 2020. "Examining the inter-relationships between procedural fairness, trust in actors, risk expectations, perceived benefits, and attitudes towards power grid expansion projects," Energy Policy, Elsevier, vol. 141(C).
    11. Tsur Somerville & Jake Wetzel, 2022. "Environmental hazards: The microgeography of land‐use negative externalities," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 50(2), pages 468-497, June.
    12. 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.
    13. Natalia Sajnóg & Katarzyna Sobolewska-Mikulska & Justyna Wójcik-Leń, 2019. "Methodology of Determination of the Range of Restrictions Related to the Existence of Transmission Devices on Private Land—Case Study of Poland," Sustainability, MDPI, vol. 11(14), pages 1-21, July.
    14. 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.
    15. Sally Sims & Peter Dent, 2005. "High-voltage Overhead Power Lines and Property Values: A Residential Study in the UK," Urban Studies, Urban Studies Journal Limited, vol. 42(4), pages 665-694, April.
    16. 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.
    17. Darshana Rajapaksa & Wasantha Athukorala & Shunsuke Managi & Prasad Neelawala & Boon Lee & Viet-Ngu Hoang & Clevo Wilson, 2018. "The impact of cell phone towers on house prices: evidence from Brisbane, Australia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 211-224, January.
    18. Yan Kestens & Marius Thériault & François Des Rosiers, 2004. "The Impact of Surrounding Land Use and Vegetation on Single-Family House Prices," Environment and Planning B, , vol. 31(4), pages 539-567, August.
    19. Mueller, Christoph Emanuel & Keil, Silke Inga & Bauer, Christian, 2019. "Underground cables vs. overhead lines: Quasi-experimental evidence for the effects on public risk expectations, attitudes, and protest behavior," Energy Policy, Elsevier, vol. 125(C), pages 456-466.
    20. 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.
    21. Jain Niraj & Chileshe Roy A. & Muwowo Francis M & Mwewa Mambwe, 2019. "Perception Effects of High Voltage Transmission (HVT) Lines on Residential Property Values: Cases of Chalala, Libala South and Kamwala South Areas of Lusaka City-Zambia," Real Estate Management and Valuation, Sciendo, vol. 27(3), pages 31-41, September.
    22. Michael J. Seiler, 2014. "Measuring the Impact of Eminent Domain Partial Takings: A Behavioral Approach," International Real Estate Review, Global Social Science Institute, vol. 17(2), pages 137-156.
    23. Charles Thomas & Gerd Welke, 2017. "The Effect of HVTLs on Property Values: An Event Study," International Real Estate Review, Global Social Science Institute, vol. 20(2), pages 167-187.

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

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