IDEAS home Printed from https://ideas.repec.org/a/kap/jrefec/v56y2018i4d10.1007_s11146-017-9600-9.html
   My bibliography  Save this article

Wireless Towers and Home Values: An Alternative Valuation Approach Using a Spatial Econometric Analysis

Author

Listed:
  • Ermanno Affuso

    (University of South Alabama)

  • J. Reid Cummings

    (University of South Alabama)

  • Huubinh Le

    (University of South Alabama)

Abstract

This is the first study to use an hedonic spatial autoregressive model to assess the impact of wireless communication towers on the value of residential properties. Using quantile analyses based on minimum distances between sold properties and visible and non-visible towers, we examine the relationship between property values and wireless tower proximity and visibility within various specified radii for homes sold after tower construction. For properties located within 0.72 kilometers of the closest tower, results reveal significant social welfare costs with values declining 2.46% on average, and up to 9.78% for homes within tower visibility range compared to homes outside tower visibility range; in aggregate, properties within the 0.72-kilometer band lose over $24 million dollars.

Suggested Citation

  • Ermanno Affuso & J. Reid Cummings & Huubinh Le, 2018. "Wireless Towers and Home Values: An Alternative Valuation Approach Using a Spatial Econometric Analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 56(4), pages 653-676, May.
    • Handle: RePEc:kap:jrefec:v:56:y:2018:i:4:d:10.1007_s11146-017-9600-9
    DOI: 10.1007/s11146-017-9600-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11146-017-9600-9
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11146-017-9600-9?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. Steven B Caudill & Ermanno Affuso & Ming Yang, 2015. "Registered sex offenders and house prices: An hedonic analysis," Urban Studies, Urban Studies Journal Limited, vol. 52(13), pages 2425-2440, October.
    2. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
    3. Stephen L. Locke & Glenn C. Blomquist, 2016. "The Cost of Convenience: Estimating the Impact of Communication Antennas on Residential Property Values," Land Economics, University of Wisconsin Press, vol. 92(1), pages 131-147.
    4. Bowes, David R. & Ihlanfeldt, Keith R., 2001. "Identifying the Impacts of Rail Transit Stations on Residential Property Values," Journal of Urban Economics, Elsevier, vol. 50(1), pages 1-25, July.
    5. 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.
    6. Olga Filippova & Michael Rehm, 2011. "The impact of proximity to cell phone towers on residential property values," International Journal of Housing Markets and Analysis, Emerald Group Publishing, vol. 4(3), pages 244-267, August.
    7. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    8. Brent L. Mahan & BStephen Polasky & Richard M. Adams, 2000. "Valuing Urban Wetlands: A Property Price Approach," Land Economics, University of Wisconsin Press, vol. 76(1), pages 100-113.
    9. Robert W. Paterson & Kevin J. Boyle, 2002. "Out of Sight, Out of Mind? Using GIS to Incorporate Visibility in Hedonic Property Value Models," Land Economics, University of Wisconsin Press, vol. 78(3), pages 417-425.
    10. Habarta, N. & Wang, G. & Mulatu, M.S. & Larish, N., 2015. "HIV testing by transgender status at centers for disease control and prevention-funded sites in the United States, Puerto Rico, and US Virgin Islands, 2009-2011," American Journal of Public Health, American Public Health Association, vol. 105(9), pages 1917-1925.
    11. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Steven B. Caudill & Franklin G. Mixon, 2020. "Estimating Bargaining Power in Real Estate Pricing Models: Conceptual and Empirical Issues," JRFM, MDPI, vol. 13(5), pages 1-8, May.
    2. Natividad Guadalajara & Miguel Ángel López & Adina Iftimi & Antonio Usai, 2021. "Influence of the Cadastral Value of the Urban Land and Neighborhood Characteristics on the Mean House Mortgage Appraisal," Land, MDPI, vol. 10(3), pages 1-17, March.

    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. Tapsuwan, Sorada & Polyakov, Maksym & Bark, Rosalind & Nolan, Martin, 2015. "Valuing the Barmah–Millewa Forest and in stream river flows: A spatial heteroskedasticity and autocorrelation consistent (SHAC) approach," Ecological Economics, Elsevier, vol. 110(C), pages 98-105.
    2. 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.
    3. Delores Conway & Christina Li & Jennifer Wolch & Christopher Kahle & Michael Jerrett, 2010. "A Spatial Autocorrelation Approach for Examining the Effects of Urban Greenspace on Residential Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 41(2), pages 150-169, August.
    4. Liu, Sezhu & Hite, Diane, 2013. "Measuring the Effect of Green Space on Property Value: An Application of the Hedonic Spatial Quantile Regression," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143045, Southern Agricultural Economics Association.
    5. Macfarlane, Gregory S. & Garrow, Laurie A. & Moreno-Cruz, Juan, 2015. "Do Atlanta residents value MARTA? Selecting an autoregressive model to recover willingness to pay," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 214-230.
    6. Ekaterina Chernobai & Michael Reibel & Michael Carney, 2011. "Nonlinear Spatial and Temporal Effects of Highway Construction on House Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 42(3), pages 348-370, April.
    7. 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.
    8. Masha Maslianskaia-Pautrel & Catherine Baumont pba148, 2016. "The nature and impacts of environmental spillovers on housing prices: A spatial hedonic analysis," Working Papers 2016.04, FAERE - French Association of Environmental and Resource Economists.
    9. Amarin Siripanich & Taha Hossein Rashidi & Emily Moylan, 2019. "Interaction of Public Transport Accessibility and Residential Property Values Using Smart Card Data," Sustainability, MDPI, vol. 11(9), pages 1-24, May.
    10. 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.
    11. 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.
    12. 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.
    13. Fabian Waltert & Felix Schlaepfer, 2007. "The role of landscape amenities in regional development: a survey of migration, regional economic and hedonic pricing studies," SOI - Working Papers 0710, Socioeconomic Institute - University of Zurich.
    14. Yu Ye & Hanting Xie & Jia Fang & Hetao Jiang & De Wang, 2019. "Daily Accessed Street Greenery and Housing Price: Measuring Economic Performance of Human-Scale Streetscapes via New Urban Data," Sustainability, MDPI, vol. 11(6), pages 1-21, March.
    15. Cao, Xiang & Boyle, Kevin J. & Siriwardena, Shyamani D. & Holmes, Thomas P., 2018. "Estimating Demand for Urban Tree Cover Using a Residential Sorting Model," 2018 Annual Meeting, August 5-7, Washington, D.C. 274020, Agricultural and Applied Economics Association.
    16. Ida Ferrara & Stephen McComb & Paul Missios, 2007. "Local Willingness-to-Pay Estimates for the Remediation of the Sydney Tar Ponds in Nova Scotia," Canadian Public Policy, University of Toronto Press, vol. 33(4), pages 441-458, December.
    17. Shanaka Herath & Johanna Choumert & Gunther Maier, 2015. "The value of the greenbelt in Vienna: a spatial hedonic analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 349-374, March.
    18. Katz, G. & Colby, Bonnie G. & Osgood, Daniel E. & Bark-Hodgins, Rosalind H. & Stromberg, J., 2005. "Do Homebuyers Care about the 'Quality' of Natural Habitats?," 2005 Annual meeting, July 24-27, Providence, RI 19283, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Kara, Abdullah & van Oosterom, Peter & Çağdaş, Volkan & Işıkdağ, Ümit & Lemmen, Christiaan, 2020. "3 Dimensional data research for property valuation in the context of the LADM Valuation Information Model," Land Use Policy, Elsevier, vol. 98(C).
    20. Liljenstolpe, Carolina, 2011. "Valuation of environmental impacts of the Rural Development Program - A hedonic model with application of GIS," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114383, European Association of Agricultural Economists.

    More about this item

    Keywords

    C5; K32; Q51; R21; R32; R38; R58;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    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:jrefec:v:56:y:2018:i:4:d:10.1007_s11146-017-9600-9. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.springer.com .

    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 hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.