Measuring the indirect costs associated with the establishment of a wind farm: An application of the Contingent Valuation Method
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 Jeffreyâ€™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.
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- 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,"
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Environmental Economy and Policy Research Working Papers
35.2008, University of Cambridge, Department of Land Economics, revised 2008.
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