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Implementing hedonic pricing models for valuing the visual impact of wind farms in Greece

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  • Skenteris, Konstantinos
  • Mirasgedis, Sevastianos
  • Tourkolias, Christos

Abstract

Although wind energy is a pollution-free and infinitely sustainable form of energy, there is considerable concern over certain environmental effects resulting from its development. Criticism focuses primarily on the visual impact of wind turbines and transmission lines, which may result in perceived deterioration of the landscape and also harm other economic activities such as tourism and real estate. This study applies the hedonic pricing method to estimate the value of environmental externalities associated with large-scale exploitation of wind power at a local level. It examines the characteristics of approximately 1,800 sales of single-family homes surrounding 17 existing wind facilities in two Greek islands, namely Evia and Kefalonia. Four different hedonic price models are developed and applied, with diverging results in the two areas. We find that in Evia, the per unit floor area sales price decreased for dwellings located within a 2 km radius of the wind farms, while in Kefalonia, the distance of the house to the wind turbines had no statistically significant effect on the sales price.

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  • Skenteris, Konstantinos & Mirasgedis, Sevastianos & Tourkolias, Christos, 2019. "Implementing hedonic pricing models for valuing the visual impact of wind farms in Greece," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 248-258.
    • Handle: RePEc:eee:ecanpo:v:64:y:2019:i:c:p:248-258
    DOI: 10.1016/j.eap.2019.09.004
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    5. Halkos, George & Managi, Shunsuke, 2023. "New developments in the disciplines of environmental and resource economics," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 513-522.
    6. Jan von Detten & Johann V. Seebaß & Jan C. Schlüter & Florian Hackelberg, 2023. "Influence of onshore wind turbines on land values [Einfluss von Onshore-Windenergieanlagen auf den Grundstückswert]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 9(1), pages 63-80, April.
    7. Lehmann, Paul & Reutter, Felix & Tafarte, Philip, 2023. "Optimal siting of onshore wind turbines: Local disamenities matter," Resource and Energy Economics, Elsevier, vol. 74(C).
    8. Rajapaksa, Darshana & Gono, Marcel & Wilson, Clevo & Managi, Shunsuke & Lee, Boon & Hoang, Viet-Ngu, 2020. "The demand for education: The impacts of good schools on property values in Brisbane, Australia," Land Use Policy, Elsevier, vol. 97(C).
    9. Tanner, Sophia & Burnett, Wesley & Maguire, Karen & Winikoff, Justin, 2024. "Blown Away: The Influence of Wind Farms on Agricultural Land Values," 2024 Annual Meeting, July 28-30, New Orleans, LA 343970, Agricultural and Applied Economics Association.
    10. Hanna Szumilas-Kowalczyk & Renata Giedych, 2022. "Analysis of Regulatory Possibilities and Obstacles to Expand Renewable Energy and Preserve Landscape Quality in the Silesian Voivodship," Resources, MDPI, vol. 11(2), pages 1-32, February.
    11. Vassiliki Vlami & Jan Danek & Stamatis Zogaris & Eirini Gallou & Ioannis P. Kokkoris & George Kehayias & Panayotis Dimopoulos, 2020. "Residents’ Views on Landscape and Ecosystem Services during a Wind Farm Proposal in an Island Protected Area," Sustainability, MDPI, vol. 12(6), pages 1-18, March.

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