Renewable energy and negative externalities: The effect of wind turbines on house prices

Dröes, Martijn I.; Koster, Hans

doi:10.1016/j.jue.2016.09.001

“…Additionally, there is evidence that home-value effects might exist in the U.S. (Heintzelman & Tuttle, 2012) and Canadian contexts, and there is growing evidence that effects exist in the European context (e.g. Dröes & Koster, 2016;Gibbons, 2015;Jensen et al, 2014). More research in this area could not only untangle conflicting results, but also increase understanding of how perceptions of property value impacts influence acceptance.…”

Section: Socioeconomic Aspectsmentioning

confidence: 99%

Thirty years of North American wind energy acceptance research: What have we learned?

Rand

¹

,

Hoen

²

2017

Energy Research & Social Science

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“…Evidence for significantly negative externalities caused by the physical presence of wind turbines comes from the United States (Heintzelmann and Tuttle, 2012), Denmark (Jensen et al, 2013), the Netherlands (Dröes and Koster, 2014), England and Wales (Gibbons, 2014), and Germany (Sunak and Madlener, 2014). The decrease in real estate prices due to the construction of wind turbines is estimated to range between 2% and 16%.…”

Section: Revealed Preference Approach: Hedonic Pricingmentioning

confidence: 99%

“…To this end, different measures of visibility are employed, using either varying proximity radii as a proxy (Heintzelmann and Tuttle, 2012;Dröes and Koster, 2014), specific visibility indices drawing upon terrain elevation (Gibbons, 2014;Sunak and Madlener, 2014), or view-shed analyses (Jensen et al, 2013). In all studies, negative externalities through visual pollution are found to significantly materialise in property prices.…”

Section: Revealed Preference Approach: Hedonic Pricingmentioning

confidence: 99%

“…Moreover, they have been shown to have negative impacts on biodiversity (see, for example, Lehnert et al (2014)). Just as other electricity generation technologies, thus, wind turbines do not come without negative externalities, which, in general, do not have market prices and, therefore, are typically valued monetarily using stated preference approaches (see, for example, Groothuis et al (2008), Jones and Eiser (2010), or Meyerhoff et al (2010)) or revealed preference approaches (see, for example, Dröes and Koster (2014), Gibbons (2014), or Sunak and Madlener (2014)). …”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Sowing the Wind and Reaping the Whirlwind? The Effect of Wind Turbines on Residential Well-Being

Krekel

¹

,

Zerrahn

²

2015

SSRN Journal

1

0

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This series presents research findings based either directly on data from the German SocioEconomic Panel study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science. Terms of use: Documents inThe decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly.Any opinions expressed in this series are those of the author(s) and not those of DIW Berlin.Research disseminated by DIW Berlin may include views on public policy issues, but the institute itself takes no institutional policy positions. AbstractWe investigate the effect of the physical presence of wind turbines on residential wellbeing in Germany, using panel data from the German Socio-Economic Panel (SOEP) and a unique novel panel data set on more than 20,000 wind turbines for the time period between 2000 and 2012. Using a Geographical Information System (GIS), we calculate the proximity between households and the nearest wind turbine as the most important determinant of their disamenities, e.g. visual interference into landscape aesthetics.Our unique novel panel data set on wind turbines, which was collected at the regional level, includes their exact geographical coordinates and construction dates. This allows estimating the causal effect of the physical presence of wind turbines on residential wellbeing, using a difference-in-differences design. To ensure comparability of the treatment and control group, we apply propensity-score and novel spatial matching techniques based on exogenous weather data and geographical locations of residence, respectively.We show that the construction of a wind turbine within a treatment radius of 4,000 m...

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“…To calculate the number of properties that are owned, we multiply the number of properties in our data with 1.43. Second, only about 55 percent of the properties is owner-occupied (Dröes and Koster, 2014). To get an estimate of the total effect, we assume that the price effect is identical for rental properties.…”

Section: Counterfactual Analysismentioning

confidence: 99%

Historic Amenities and Housing Externalities: Evidence from the Netherlands

Koster

¹

,

Rouwendal

²

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. SUMMARY -It has been argued that the growth of cities is increasingly determined by the presence of amenities. We study the economic effects of large scale subsidised investments in historic amenities, by looking at their impact on house prices. We aim to distinguish between the direct and indirect effect of investments. The latter implies a change in the behaviour of neighbours via changes in the level of maintenance of the house. We use a large nationwide dataset with housing transactions from 1985-2011 and data on investments in cultural heritage. To control for the fact that these investments are non-randomly distributed over space we use repeat sales. Furthermore, we construct an instrument based on yearly fluctuations in the size of national subsidy programmes to maintain cultural heritage. We show that a one million euro per square kilometre increase in investments in cultural heritage leads to a price increase of 1.5-3.0 percent of non-targeted buildings. We do not find evidence that the maintenance state of properties that are not eligible for subsidies are improved, suggesting that any price effect due to investments in cultural heritage is a direct effect of investments. Terms of use: Documents in JEL-code -R30, R33

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Renewable energy and negative externalities: The effect of wind turbines on house prices

Cited by 80 publications

References 24 publications

Thirty years of North American wind energy acceptance research: What have we learned?

Thirty years of North American wind energy acceptance research: What have we learned?

Sowing the Wind and Reaping the Whirlwind? The Effect of Wind Turbines on Residential Well-Being

Historic Amenities and Housing Externalities: Evidence from the Netherlands

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