The Impact of Wind Power Projects on Residential Property Values in the United States: A Multi-Site Hedonic Analysis

TitleThe Impact of Wind Power Projects on Residential Property Values in the United States: A Multi-Site Hedonic Analysis
Publication TypeJournal Article
Year of Publication2009
AuthorsHoen, Ben, Ryan H. Wiser, Peter Cappers, Mark Thayer, and Gautam Sethi
JournalJournal of Real Estate Research
VolumeVol. 33
Start Page279
IssueIsssue 3
Pagination167
Date Published12/2009
KeywordsElectricity Markets and Policy Group, Energy Analysis and Environmental Impacts Department, Property Values, Public Acceptance, Wind Energy
Abstract

With wind energy expanding rapidly in the U.S. and abroad, and with an increasing number of communities considering wind power development nearby, there is an urgent need to empirically investigate common community concerns about wind project development. The concern that property values will be adversely affected by wind energy facilities is commonly put forth by stakeholders. Although this concern is not unreasonable, given property value impacts that have been found near high voltage transmission lines and other electric generation facilities, the impacts of wind energy facilities on residential property values had not previously been investigated thoroughly.

The present research collected data on almost 7,500 sales of single family homes situated within 10 miles of 24 existing wind facilities in nine different U.S. states. The conclusions of the study are drawn from eight different hedonic pricing models, as well as both repeat sales and sales volume models. The various analyses are strongly consistent in that none of the models uncovers conclusive evidence of the existence of any widespread property value impacts that might be present in communities surrounding wind energy facilities. Specifically, neither the view of the wind facilities nor the distance of the home to those facilities is found to have any consistent, measurable, and statistically significant effect on home sales prices. Although the analysis cannot dismiss the possibility that individual homes or small numbers of homes have been or could be negatively impacted, it finds that if these impacts do exist, they are either too small and/or too infrequent to result in any widespread, statistically observable impact.

 

LBNL Report NumberLBNL-2829E
Refereed DesignationUnknown
AttachmentSize
Report PDF3.65 MB
Presentation PDF1.09 MB
Journal PDF238.99 KB