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Gone with the Wind: Valuing the Visual Impacts of Wind Turbines through House Prices

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  • Stephen Gibbons

Abstract

This study provides quantitative evidence on the local benefits and costs of wind farm developments in England and Wales, focussing on their visual environmental impacts. In the tradition of studies in environmental, public and urban economics, housing costs are used to reveal local preferences for views of wind farm developments. Estimation is based on quasi-experimental research designs that compare price changes occurring in places where wind farms become visible, with price changes in appropriate comparator groups. These comparator groups include places close to wind farms that became visible in the past, or where they will become operational in the future and places close to wind farms sites but where the turbines are hidden by the terrain. All these comparisons suggest that wind farm visibility reduces local house prices, and the implied visual environmental costs are substantial.

Suggested Citation

  • Stephen Gibbons, 2014. "Gone with the Wind: Valuing the Visual Impacts of Wind Turbines through House Prices," SERC Discussion Papers 0159, Spatial Economics Research Centre, LSE.
  • Handle: RePEc:cep:sercdp:0159
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    References listed on IDEAS

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    Cited by:

    1. Gabriel M. Ahlfeldt & Nancy Holman, 2015. "Distinctively Different: A New Approach to Valuing Architectural Amenities," SERC Discussion Papers 0171, Spatial Economics Research Centre, LSE.
    2. Harold, Jason & Bertsch, Valentin & Lawrence, Thomas & Hall, Magie, 2018. "Drivers of people's preferences for spatial proximity to energy infrastructure technologies: a cross-country analysis," Papers WP583, Economic and Social Research Institute (ESRI).
    3. Steve Gibbons & Stephan Heblich & Esther Lho & Christopher Timmins, 2016. "Fear of Fracking? The Impact of the Shale Gas Exploration on House Prices in Britain," SERC Discussion Papers 0207, Spatial Economics Research Centre, LSE.
    4. repec:spr:anresc:v:60:y:2018:i:1:d:10.1007_s00168-017-0846-1 is not listed on IDEAS
    5. Ted Pinchbeck, 2014. "Walk This Way: Estimating Impacts of Walk in Centres at Hospital Emergency Departments in the English National Health Service," SERC Discussion Papers 0167, Spatial Economics Research Centre, LSE.
    6. Bonar, Paul A.J. & Bryden, Ian G. & Borthwick, Alistair G.L., 2015. "Social and ecological impacts of marine energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 486-495.
    7. Kerr, Sandy & Johnson, Kate & Weir, Stephanie, 2017. "Understanding community benefit payments from renewable energy development," Energy Policy, Elsevier, vol. 105(C), pages 202-211.
    8. repec:eee:ecolec:v:141:y:2017:i:c:p:245-260 is not listed on IDEAS
    9. Gibbons, Steve & Overman, Henry & Sarvimäki, Matti, 2017. "The local economic impacts of regeneration projects: Evidence from UK’s Single Regeneration Budget," Working Papers 92, VATT Institute for Economic Research.
    10. 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.
    11. Lauren Knapp & Jacob Ladenburg, 2015. "How Spatial Relationships Influence Economic Preferences for Wind Power—A Review," Energies, MDPI, Open Access Journal, vol. 8(6), pages 1-25, June.
    12. Langer, Katharina & Decker, Thomas & Roosen, Jutta & Menrad, Klaus, 2016. "A qualitative analysis to understand the acceptance of wind energy in Bavaria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 248-259.
    13. Rakitan, Timothy John, 2017. "Essays in the economics of energy development and disamenities," ISU General Staff Papers 201701010800007207, Iowa State University, Department of Economics.
    14. repec:eee:enepol:v:116:y:2018:i:c:p:50-59 is not listed on IDEAS
    15. 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.
    16. repec:tou:journl:v:46:y:2017:p:93-115 is not listed on IDEAS
    17. Gibbons, Steve & Overman, Henry G & Sarvim�ki, Matti, 2017. "The local economic impacts of regeneration projects: Evidence from UK's Single Regeneration Budget," CEPR Discussion Papers 12311, C.E.P.R. Discussion Papers.
    18. Zerrahn, Alexander & Krekel, Christian, 2015. "Sowing the Wind and Reaping the Whirlwind? The Effect of Wind Turbines on Residential Well-Being," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112956, Verein für Socialpolitik / German Economic Association.
    19. Gibbons, Steve & Overman, Henry G & Sarvim�ki, Matti, 2017. "The local economic impacts of regeneration projects: Evidence from UK's Single Regeneration Budget," CEPR Discussion Papers 12311, C.E.P.R. Discussion Papers.
    20. repec:eee:ecolec:v:137:y:2017:i:c:p:195-206 is not listed on IDEAS
    21. Renuka K. Ganegodage & Peyman Khezr & Rabindra Nepal, 2016. "The Effect of Undesirable Land Use Facilities on Property Values: New Evidence from Australian Regional Fossil-Fired Plants," Discussion Papers Series 569, School of Economics, University of Queensland, Australia.
    22. García, Jorge H. & Cherry, Todd L. & Kallbekken, Steffen & Torvanger, Asbjørn, 2016. "Willingness to accept local wind energy development: Does the compensation mechanism matter?," Energy Policy, Elsevier, vol. 99(C), pages 165-173.

    More about this item

    Keywords

    Housing prices; environment; wind farms; infrastructure;

    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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