IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v88y2025i3d10.1007_s10640-024-00947-x.html
   My bibliography  Save this article

Wind Turbines, Shadow Flicker, and Real Estate Values

Author

Listed:
  • Carsten Andersen

    (Aarhus University
    Center for Research in Energy: Economics and Markets (CoRE))

  • Timo Hener

    (Aarhus University
    Center for Research in Energy: Economics and Markets (CoRE)
    CESifo Research Network Affiliate)

Abstract

We analyze the impact of wind turbines on house prices, distinguishing between effects of proximity and shadow flicker from rotor blades covering the sun. By utilizing data from 2.4 million house transactions and 6,878 wind turbines in Denmark, we can control for house fixed effects in our estimation. Our results suggest strong negative impacts on house prices, with reductions of up to 12 percent for modern giant turbines. Homes affected by shadow flicker experience an additional decrease in value of 8.1 percent. Our findings suggest a nuanced perspective on the local externalities of wind turbines regarding size and relative location.

Suggested Citation

  • Carsten Andersen & Timo Hener, 2025. "Wind Turbines, Shadow Flicker, and Real Estate Values," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(3), pages 731-759, March.
    • Handle: RePEc:kap:enreec:v:88:y:2025:i:3:d:10.1007_s10640-024-00947-x
    DOI: 10.1007/s10640-024-00947-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10640-024-00947-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10640-024-00947-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jensen, Cathrine Ulla & Panduro, Toke Emil & Lundhede, Thomas Hedemark & Nielsen, Anne Sofie Elberg & Dalsgaard, Mette & Thorsen, Bo Jellesmark, 2018. "The impact of on-shore and off-shore wind turbine farms on property prices," Energy Policy, Elsevier, vol. 116(C), pages 50-59.
    2. Dröes, Martijn I. & Koster, Hans R.A., 2016. "Renewable energy and negative externalities: The effect of wind turbines on house prices," Journal of Urban Economics, Elsevier, vol. 96(C), pages 121-141.
    3. Sally Sims & Peter Dent, 2007. "Property stigma: wind farms are just the latest fashion," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 25(6), pages 626-651, October.
    4. Ben Hoen & Carol Atkinson-Palombo, 2016. "Wind Turbines, Amenities and Disamenitites: Astudy of Home Value Impacts in Densely Populated Massachusetts," Journal of Real Estate Research, Taylor & Francis Journals, vol. 38(4), pages 473-504, October.
    5. Bent Jesper Christensen & Nabanita Datta Gupta & Paolo Santucci de Magistris, 2021. "Measuring the impact of clean energy production on CO2 abatement in Denmark: Upper bound estimation and forecasting," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 184(1), pages 118-149, January.
    6. Martin D. Heintzelman & Carrie M. Tuttle, 2012. "Values in the Wind: A Hedonic Analysis of Wind Power Facilities," Land Economics, University of Wisconsin Press, vol. 88(3), pages 571-588.
    7. Sally Sims & Peter Dent, 2007. "Property stigma: wind farms are just the latest fashion," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 25(6), pages 626-651, October.
    8. Ben Hoen & Ryan Wiser & Peter Cappers & Mark Thayer & Gautam Sethi, 2011. "Wind Energy Facilities and Residential Properties: The Effect of Proximity and View on Sales Prices," Journal of Real Estate Research, Taylor & Francis Journals, vol. 33(3), pages 279-316, January.
    9. Dröes, Martijn I. & Koster, Hans R.A., 2021. "Wind turbines, solar farms, and house prices," Energy Policy, Elsevier, vol. 155(C).
    10. Gibbons, Stephen, 2015. "Gone with the wind: Valuing the visual impacts of wind turbines through house prices," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 177-196.
    11. Ben Hoen & Ryan Wiser & Peter Cappers & Mark Thayer & Gautam Sethi, 2011. "Wind Energy Facilities and Residential Properties: The Effect of Proximity and View on Sales Prices," Journal of Real Estate Research, American Real Estate Society, vol. 33(3), pages 279-316.
    12. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    13. Richard J. Vyn & Ryan M. McCullough, 2014. "The Effects of Wind Turbines on Property Values in Ontario: Does Public Perception Match Empirical Evidence?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(3), pages 365-392, September.
    14. Cathrine Ulla Jensen & Toke Emil Panduro & Thomas Hedemark Lundhede, 2014. "The Vindication of Don Quixote: The Impact of Noise and Visual Pollution from Wind Turbines," Land Economics, University of Wisconsin Press, vol. 90(4), pages 668-682.
    15. Lucas W. Davis, 2011. "The Effect of Power Plants on Local Housing Values and Rents," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1391-1402, November.
    16. Sunak, Yasin & Madlener, Reinhard, 2016. "The impact of wind farm visibility on property values: A spatial difference-in-differences analysis," Energy Economics, Elsevier, vol. 55(C), pages 79-91.
    17. Ben Hoen & Jason Brown & Thomas Jackson & Mark Thayer & Ryan Wiser & Peter Cappers, 2015. "Spatial Hedonic Analysis of the Effects of US Wind Energy Facilities on Surrounding Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 51(1), pages 22-51, July.
    18. Cathrine Ulla Jensen & Toke Emil Panduro & Thomas Hedemark Lundhede, 2014. "The Vindication of Don Quixote: The Impact of Noise and Visual Pollution from Wind Turbines," Land Economics, University of Wisconsin Press, vol. 90(4), pages 668-682.
    19. Lang, Corey & Opaluch, James J. & Sfinarolakis, George, 2014. "The windy city: Property value impacts of wind turbines in an urban setting," Energy Economics, Elsevier, vol. 44(C), pages 413-421.
    20. Dong, Luran & Gaur, Vasundhara & Lang, Corey, 2023. "Property value impacts of onshore wind energy in New England: The importance of spatial heterogeneity and temporal dynamics," Energy Policy, Elsevier, vol. 179(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brunner, Eric J. & Hoen, Ben & Rand, Joe & Schwegman, David, 2024. "Commercial wind turbines and residential home values: New evidence from the universe of land-based wind projects in the United States," Energy Policy, Elsevier, vol. 185(C).
    2. Hans Westlund & Mats Wilhelmsson, 2021. "The Socio-Economic Cost of Wind Turbines: A Swedish Case Study," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
    3. Jensen, Cathrine Ulla & Panduro, Toke Emil & Lundhede, Thomas Hedemark & Nielsen, Anne Sofie Elberg & Dalsgaard, Mette & Thorsen, Bo Jellesmark, 2018. "The impact of on-shore and off-shore wind turbine farms on property prices," Energy Policy, Elsevier, vol. 116(C), pages 50-59.
    4. Yingdan Mei & Pengfei Liu & Lina Meng & Lu Lin, 2024. "Evaluate the Impacts of Wind Farm Facilities on Land Values with Geographically-Linked Microdata in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(2), pages 465-489, February.
    5. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    6. Heintzelman, Martin D. & Vyn, Richard J. & Guth, Sarah, 2017. "Understanding the Amenity Impacts of Wind Development on an International Border," Ecological Economics, Elsevier, vol. 137(C), pages 195-206.
    7. Frondel, Manuel & Kussel, Gerhard & Sommer, Stephan & Vance, Colin, 2019. "Local cost for global benefit: The case of wind turbines," Ruhr Economic Papers 791, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen, revised 2019.
    8. Shoeib, Eman Ahmed Hamed & Hamin Infield, Elisabeth & Renski, Henry C., 2021. "Measuring the impacts of wind energy projects on U.S. rural counties’ community services and cost of living," Energy Policy, Elsevier, vol. 153(C).
    9. Dong, Luran & Gaur, Vasundhara & Lang, Corey, 2023. "Property value impacts of onshore wind energy in New England: The importance of spatial heterogeneity and temporal dynamics," Energy Policy, Elsevier, vol. 179(C).
    10. Lehmann, Paul & Reutter, Felix & Tafarte, Philip, 2021. "Optimal siting of onshore wind turbines: Local disamenities matter," UFZ Discussion Papers 4/2021, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    11. Wehrle, Sebastian & Gruber, Katharina & Schmidt, Johannes, 2021. "The cost of undisturbed landscapes," Energy Policy, Elsevier, vol. 159(C).
    12. Lehmann, Paul & Reutter, Felix & Tafarte, Philip, 2023. "Optimal siting of onshore wind turbines: Local disamenities matter," Resource and Energy Economics, Elsevier, vol. 74(C).
    13. Oliver Ruhnau & Anselm Eicke & Raffaele Sgarlato & Tim Tröndle & Lion Hirth, 2024. "Cost-Potential Curves of Onshore Wind Energy: the Role of Disamenity Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(2), pages 347-368, February.
    14. Dong, Luran & Lang, Corey, 2022. "Do views of offshore wind energy detract? A hedonic price analysis of the Block Island wind farm in Rhode Island," Energy Policy, Elsevier, vol. 167(C).
    15. Yushi Kunugi & Toshi H. Arimura & Miwa Nakai, 2021. "The Long-Term Impact of Wind Power Generation on a Local Community: Economics Analysis of Subjective Well-Being Data in Chōshi City," Energies, MDPI, vol. 14(13), pages 1-18, July.
    16. Marvin Schütt, 2024. "Wind Turbines and Property Values: A Meta-Regression Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 1-43, January.
    17. Mathias Mier & Patrick Hoffmann, 2022. "Wind Turbine Placement and Externalities," ifo Working Paper Series 369, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    18. Pates, Nicholas J. & Kim, GwanSeon & Mark, Tyler B. & Ritter, Matthias, 2020. "Windfalls or wind falls? The Local Effects of Turbine Development on US Agricultural Land Values," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304611, Agricultural and Applied Economics Association.
    19. Dröes, Martijn I. & Koster, Hans R.A., 2021. "Wind turbines, solar farms, and house prices," Energy Policy, Elsevier, vol. 155(C).
    20. Joly, Machteld & De Jaeger, Simon, 2021. "Not in my backyard: A hedonic approach to the construction timeline of wind turbines in Flanders, Belgium," Land Use Policy, Elsevier, vol. 108(C).

    More about this item

    Keywords

    Wind turbines; House prices; Shadow flicker;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:88:y:2025:i:3:d:10.1007_s10640-024-00947-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.