IDEAS home Printed from https://ideas.repec.org/p/rza/wpaper/258.html
   My bibliography  Save this paper

Measuring the indirect costs associated with the establishment of a wind farm: An application of the Contingent Valuation Method

Author

Listed:
  • M. du Preez
  • G. Menzies
  • M.C. Sale
  • S.G. Hosking

Abstract

Although a green energy source, the location of electrical generating windmills may cause a disamenity effect (negative externality). The establishment of a wind farm is known as a locally undesirable land use (LULU) and leads to the not-in-my-backyard syndrome (NIMBY). In an application of the contingent valuation method, a willingness-to-accept framework was used to estimate the aggregate annual compensation required to allow the construction of a wind farm near Jeffrey’s Bay, South Africa. This compensation amounted to R490 695. A binary choice logit analysis found that retirement status, concern about climate change, concern about view-shed impacts and the offer amount are important predictors of voting for or against the project.

Suggested Citation

  • M. du Preez & G. Menzies & M.C. Sale & S.G. Hosking, 2011. "Measuring the indirect costs associated with the establishment of a wind farm: An application of the Contingent Valuation Method," Working Papers 258, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:258
    as

    Download full text from publisher

    File URL: http://www.econrsa.org/node/281
    Download Restriction: no

    References listed on IDEAS

    as
    1. Groothuis, Peter A. & Groothuis, Jana D. & Whitehead, John C., 2008. "Green vs. green: Measuring the compensation required to site electrical generation windmills in a viewshed," Energy Policy, Elsevier, vol. 36(4), pages 1545-1550, April.
    2. Charles Warren & Carolyn Lumsden & Simone O'Dowd & Richard Birnie, 2005. "'Green On Green': Public perceptions of wind power in Scotland and Ireland," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 48(6), pages 853-875.
    3. Dimitropoulos, Alexandros & Kontoleon, Andreas, 2009. "Assessing the determinants of local acceptability of wind-farm investment: A choice experiment in the Greek Aegean Islands," Energy Policy, Elsevier, vol. 37(5), pages 1842-1854, May.
    4. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    5. Yue, Cheng-Dar & Liu, Chung-Ming & Liou, Eric M. L., 2001. "A transition toward a sustainable energy future: feasibility assessment and development strategies of wind power in Taiwan," Energy Policy, Elsevier, vol. 29(12), pages 951-963, October.
    6. Ladenburg, Jacob, 2008. "Attitudes towards on-land and offshore wind power development in Denmark; choice of development strategy," Renewable Energy, Elsevier, vol. 33(1), pages 111-118.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Contingent Valuation Method; indirect cost; wind farm;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:rza:wpaper:258. 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: (Charles Tanton). General contact details of provider: http://edirc.repec.org/data/ersacza.html .

    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 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.

    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.