The Impact of Wind Farms on Property Values: A Geographically Weighted Hedonic Pricing Model
Wind power is the most important renewable energy source in many countries today, characterized by a rapid and extensive diffusion since the 1990s. However, it has also triggered much debate with regard to the impact on landscape and vista. Therefore, siting processes of wind farm projects are often accompanied by massive public protest, because of visual and aural impacts on the surrounding area. These mostly negative consequences might be reflected in property values and house prices. The aim of this paper is to investigate the impacts of wind farms on the surrounding area through property values, by means of a hedonic pricing model, using both a spatial fixed (viewshed) effects (accounting for spatially clustered unobserved influences) and a Geographically Weighted Regression model (accounting for spatial heterogeneity). The analysis is the first of its kind undertaken for a local region in Continental Europe (North Rhine-Westphalia, Germany). Viewsheds are calculated for each property using a digital surface model. Focusing on proximity and visibility effects caused by wind farm sites, we find that proximity, measured by the inverse distance to the nearest wind turbine, indeed causes significant negative impacts on the surrounding property values. Thereby, local statistics reveal varying spatial patterns of the coefficient estimates across and within the city areas and districts. In contrast, no evidence is found for a statistically significant impact of the visibility of the wind farm turbines.
|Date of creation:||May 2012|
|Date of revision:||Mar 2013|
|Note:||revised March 2013|
|Contact details of provider:|| Web page: http://www.eonerc.rwth-aachen.de/fcn|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David E. Clark & Tim Allison, 1999. "articles: Spent nuclear fuel and residential property values: the influence of proximity, visual cues and public information," Papers in Regional Science, Springer;Regional Science Association International, vol. 78(4), pages 403-421.
- Leggett, Christopher G. & Bockstael, Nancy E., 2000. "Evidence of the Effects of Water Quality on Residential Land Prices," Journal of Environmental Economics and Management, Elsevier, vol. 39(2), pages 121-144, March.
- van der Horst, Dan, 2007. "NIMBY or not? Exploring the relevance of location and the politics of voiced opinions in renewable energy siting controversies," Energy Policy, Elsevier, vol. 35(5), pages 2705-2714, May.
- Molly Espey, 2000. "The Impact of Airport Noise and Proximity on Residential Property Values," Growth and Change, Wiley Blackwell, vol. 31(3), pages 408-419.
- C Brunsdon & A S Fotheringham & M Charlton, 1998. "Spatial Nonstationarity and Autoregressive Models," Environment and Planning A, , vol. 30(6), pages 957-973, June.
- Sims Sally & Dent Peter & Oskrochi G., 2008. "Modelling the Impact of Wind Farms on House Prices in the UK," International Journal of Strategic Property Management, De Gruyter Open, vol. 12(4), pages 251-269, December.
- Kenneth Y. Chay & Michael Greenstone, 2005.
"Does Air Quality Matter? Evidence from the Housing Market,"
Journal of Political Economy,
University of Chicago Press, vol. 113(2), pages 376-424, April.
- Kenneth Y. Chay & Michael Greenstone, 1998. "Does Air Quality Matter? Evidence from the Housing Market," NBER Working Papers 6826, National Bureau of Economic Research, Inc.
- Ackermann, Thomas & Söder, Lennart, 2002. "An overview of wind energy-status 2002," Renewable and Sustainable Energy Reviews, Elsevier, vol. 6(1-2), pages 67-127.
- Robert A. Simons & William Bowen & Arthur Sementell, 1997. "The Effect of Underground Storage Tanks on Residential Property Values in Cuyahoga County, Ohio," Journal of Real Estate Research, American Real Estate Society, vol. 14(1), pages 29-42.
- Arthur C. Nelson & John Genereux & Michelle Genereux, 1992. "Price Effects of Landfills on House Values," Land Economics, University of Wisconsin Press, vol. 68(4), pages 359-365.
- Wolsink, Maarten, 2000. "Wind power and the NIMBY-myth: institutional capacity and the limited significance of public support," Renewable Energy, Elsevier, vol. 21(1), pages 49-64.
- Yee Leung & Chang-Lin Mei & Wen-Xiu Zhang, 2000. "Statistical tests for spatial nonstationarity based on the geographically weighted regression model," Environment and Planning A, Pion Ltd, London, vol. 32(1), pages 9-32, January.
- Andrea Baranzini & JosÃ© V. Ramirez, 2005. "Paying for Quietness: The Impact of Noise on Geneva Rents," Urban Studies, Urban Studies Journal Limited, vol. 42(4), pages 633-646, April.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
- Kohlhase, Janet E., 1991. "The impact of toxic waste sites on housing values," Journal of Urban Economics, Elsevier, vol. 30(1), pages 1-26, July.
- Poor, P. Joan & Pessagno, Keri L. & Paul, Robert W., 2007. "Exploring the hedonic value of ambient water quality: A local watershed-based study," Ecological Economics, Elsevier, vol. 60(4), pages 797-806, February.
- Dekkers, Jasper E.C. & van der Straaten, J. Willemijn, 2009. "Monetary valuation of aircraft noise: A hedonic analysis around Amsterdam airport," Ecological Economics, Elsevier, vol. 68(11), pages 2850-2858, September.
- Krohn, Søren & Damborg, Steffen, 1999. "On public attitudes towards wind power," Renewable Energy, Elsevier, vol. 16(1), pages 954-960.
- 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..
- Andrew D. Krueger & George R. Parsons & Jeremy Firestone, 2011. "Valuing the Visual Disamenity of Offshore Wind Power Projects at Varying Distances from the Shore: An Application on the Delaware Shoreline," Land Economics, University of Wisconsin Press, vol. 87(2), pages 268-283.
- Junginger, M. & Faaij, A. & Turkenburg, W. C., 2005. "Global experience curves for wind farms," Energy Policy, Elsevier, vol. 33(2), pages 133-150, January.
- Geoghegan, Jacqueline & Wainger, Lisa A. & Bockstael, Nancy E., 1997. "Spatial landscape indices in a hedonic framework: an ecological economics analysis using GIS," Ecological Economics, Elsevier, vol. 23(3), pages 251-264, December.
- C Brunsdon & A S Fotheringham & M Charlton, 1998. "Spatial nonstationarity and autoregressive models," Environment and Planning A, Pion Ltd, London, vol. 30(6), pages 957-973, June.
- 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.
- Sally Sims & Peter Dent & G. Reza Oskrochi, 2008. "Modelling the impact of wind farms on house prices in the UK," International Journal of Strategic Property Management, Taylor & Francis Journals, vol. 12(4), pages 251-269, August.
- Won Kim, Chong & Phipps, Tim T. & Anselin, Luc, 2003. "Measuring the benefits of air quality improvement: a spatial hedonic approach," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 24-39, January.
- Kim, Chong Won & Phipps, Tim T. & Anselin, Luc, 1998. "Measuring The Benefits Of Air Quality Improvement: A Spatial Hedonic Approach," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20959, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Nelson, Jon P., 1978. "Residential choice, hedonic prices, and the demand for urban air quality," Journal of Urban Economics, Elsevier, vol. 5(3), pages 357-369, July. Full references (including those not matched with items on IDEAS)