A Spatial Hedonic Analysis of the Effects of Wind Energy Facilities on Surrounding Property Values in the United States
|Title||A Spatial Hedonic Analysis of the Effects of Wind Energy Facilities on Surrounding Property Values in the United States|
|Year of Publication||2013|
|Authors||Hoen, Ben, Jason P. Brown, Thomas Jackson, Ryan H. Wiser, Mark Thayer, and Peter Cappers|
Previous research on the effects of wind energy facilities on surrounding home values has been limited by small samples of relevant home-sale data and the inability to account adequately for confounding home-value factors and spatial dependence in the data. This study helps fill those gaps. We collected data from more than 50,000 home sales among 27 counties in nine states. These homes were within 10 miles of 67 different wind facilities, and 1,198 sales were within 1 mile of a turbine—many more than previous studies have collected. The data span the periods well before announcement of the wind facilities to well after their construction. We use OLS and spatial-process difference-in-difference hedonic models to estimate the home-value impacts of the wind facilities; these models control for value factors existing before the wind facilities’ announcements, the spatial dependence of unobserved factors effecting home values, and value changes over time. A set of robustness models adds confidence to our results. Regardless of model specification, we find no statistical evidence that home values near turbines were affected in the post-construction or post-announcement/pre-construction periods. Previous research on potentially analogous disamenities (e.g., high-voltage transmission lines, roads) suggests that the property-value effect of wind turbines is likely to be small, on average, if it is present at all, potentially helping to explain why no evidence of an effect was found in the present research.
This research is in press with the Journal of Real Estate Finance and Economics. To see the published version, please click here.
|LBNL Report Number||LBNL-6362E|