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Gone with the wind: valuing the visual impacts of wind turbines through house prices

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  • Gibbons, Stephen

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 sales prices 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 comparison groups. These 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

  • Gibbons, Stephen, 2015. "Gone with the wind: valuing the visual impacts of wind turbines through house prices," LSE Research Online Documents on Economics 62880, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:62880
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    More about this item

    Keywords

    housing prices; environment; wind farms; infrastructure; energy;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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