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Perceived externalities of cell phone base stations: the case of property prices in Hamburg, Germany

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  • Sebastian Brandt
  • Wolfgang Maennig

Abstract

We examine the impact of cell phone base stations on prices of condominiums in Hamburg, Germany. This is the first hedonic study on this subject for housing prices in Europe and the first ever to examine the price impact of base stations within a whole metropolis. We distinguish between individual masts and groups of masts. On the basis of a dataset of over 1000 base stations set up in Hamburg, we find that only immediate proximity to groups of antenna masts is perceived as harmful by residents of nearby condominiums. For individual masts no effect on residential property prices in the surrounding areas was observed, indicating that cell phone service providers should prevent installation of groups of masts in a single location. We control for spatial dependence and show that the influence of cell phone base stations on adjacent residential property prices can be overestimated, if other negative externalities that are typically correlated with the proximity to base stations are neglected. Keywords: cell phone base stations, externalities, residential property prices, Hamburg

Suggested Citation

  • Sebastian Brandt & Wolfgang Maennig, 2012. "Perceived externalities of cell phone base stations: the case of property prices in Hamburg, Germany," Environment and Planning A, Pion Ltd, London, vol. 44(2), pages 396-410, February.
  • Handle: RePEc:pio:envira:v:44:y:2012:i:2:p:396-410
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    1. Arne Feddersen & Wolfgang Maennig, 2005. "Trends in Competitive Balance: Is there Evidence for Growing Imbalance in Professional Sport Leagues?," Working Papers 0012005, Chair for Economic Policy, University of Hamburg.
    2. Wolfgang Maennig & Florian Schwarthoff, 2006. "Stadium Architecture and regional economic development: International experience and the plans of Durban," Working Papers 200604, Chair for Economic Policy, University of Hamburg.
    3. Arne Feddersen, 2006. "Economic Consequences of the UEFA Champions League for National Championships - The Case of Germany," Working Papers 0012006, Chair for Economic Policy, University of Hamburg.
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    Cited by:

    1. 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.
    2. Gorecki, Paul & Hennessy, Hugh & Lyons, Sean, 2011. "How impact fees and local planning regulation can influence deployment of telecoms infrastructure," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52160, International Telecommunications Society (ITS).

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