IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v88y2012iii1p571-588.html
   My bibliography  Save this article

Values in the Wind: A Hedonic Analysis of Wind Power Facilities

Author

Listed:
  • Martin D. Heintzelman
  • Carrie M. Tuttle

Abstract

The siting of wind facilities is extremely controversial. This paper uses data on 11,331 property transactions over nine years in northern New York State to explore the effects of new wind facilities on property values. We use a fixed-effects framework to control for omitted variables and endogeneity biases. We find that nearby wind facilities significantly reduce property values in two of the three counties studied. These results indicate that existing compensation to local homeowners/communities may not be sufficient to prevent a loss of property values.

Suggested Citation

  • Martin D. Heintzelman & Carrie M. Tuttle, 2012. "Values in the Wind: A Hedonic Analysis of Wind Power Facilities," Land Economics, University of Wisconsin Press, vol. 88(3), pages 571-588.
  • Handle: RePEc:uwp:landec:v:88:y:2012:iii:1:p:571-588
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/88/3/571
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel T. Kaffine & Brannin J. McBee & Jozef Lieskovsky, 2012. "Emissions savings from wind power generation: Evidence from Texas, California and the Upper Midwest," Working Papers 2012-03, Colorado School of Mines, Division of Economics and Business.
    2. 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," Energy Policy, Elsevier, vol. 36(4), pages 1545-1550, April.
    3. Andrew D. Krueger & George R. Parsons & Jeremy Firestone, 2011. "Valuing the Visual Disamenity of Offshore Wind Projects at Varying Distances from the Shore: An Application on the Delaware Shoreline," Working Papers 11-04, University of Delaware, Department of Economics.
    4. Parsons, George R., 1990. "Hedonic prices and public goods: An argument for weighting locational attributes in hedonic regressions by lot size," Journal of Urban Economics, Elsevier, vol. 27(3), pages 308-321, May.
    5. Andrew D. Krueger & George R. Parsons & Jeremy Firestone, 2011. "Valuing the Visual Disamenity of Offshore Wind Power Projects at Varying Distances from the Shore: An Application on the Delaware Shoreline," Land Economics, University of Wisconsin Press, vol. 87(2), pages 268-283.
    6. Palmquist, Raymond B., 1982. "Measuring environmental effects on property values without hedonic regressions," Journal of Urban Economics, Elsevier, vol. 11(3), pages 333-347, May.
    7. Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2010. "Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities?," Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 145-160, November.
    8. Ted Gayer & James T. Hamilton & W. Kip Viscusi, 2002. "The Market Value of Reducing Cancer Risk: Hedonic Housing Prices with Changing Information," Southern Economic Journal, John Wiley & Sons, vol. 69(2), pages 266-289, October.
    9. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Allan Beltrán & David Maddison & Robert J. R. Elliott, 2018. "Assessing the Economic Benefits of Flood Defenses: A Repeat‐Sales Approach," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2340-2367, November.
    2. Kent Kovacs & Thomas Holmes & Jeffrey Englin & Janice Alexander, 2011. "The Dynamic Response of Housing Values to a Forest Invasive Disease: Evidence from a Sudden Oak Death Infestation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(3), pages 445-471, July.
    3. Jellicoe, Michaela & Delgado, Michael S., 2015. "Quantifying the Effects of Underground Natural Gas Storage on Nearby Residents," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(2), pages 1-24, August.
    4. Petter Gudding & Gorm Kipperberg & Craig Bond & Kelly Cullen & Eric Steltzer, 2018. "When a Good Is a Bad (or a Bad Is a Good)—Analysis of Data from an Ambiguous Nonmarket Valuation Setting," Sustainability, MDPI, vol. 10(1), pages 1-16, January.
    5. Petrova, Maria A., 2016. "From NIMBY to acceptance: Toward a novel framework — VESPA — For organizing and interpreting community concerns," Renewable Energy, Elsevier, vol. 86(C), pages 1280-1294.
    6. Peri, Erez & Becker, Nir & Tal, Alon, 2020. "What really undermines public acceptance of wind turbines? A choice experiment analysis in Israel," Land Use Policy, Elsevier, vol. 99(C).
    7. Lee, Min-Kyu & Nam, Jungho & Kim, Miju, 2023. "Valuing the public preference for offshore wind energy: The case study in South Korea," Energy, Elsevier, vol. 263(PB).
    8. Richard J. Vyn & Ryan M. McCullough, 2014. "The Effects of Wind Turbines on Property Values in Ontario: Does Public Perception Match Empirical Evidence?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(3), pages 365-392, September.
    9. Livy, Mitchell R., 2023. "Assessing the housing price capitalization of non-destructive flooding events," Research in Economics, Elsevier, vol. 77(2), pages 265-274.
    10. van Kooten, G. Cornelis, 2015. "All you want to know about the Economics of Wind Power," Working Papers 241693, University of Victoria, Resource Economics and Policy.
    11. Brennan, Noreen & Van Rensburg, Thomas M, 2016. "Wind farm externalities and public preferences for community consultation in Ireland: A discrete choice experiments approach," Energy Policy, Elsevier, vol. 94(C), pages 355-365.
    12. Nicolai V. Kuminoff & V. Kerry Smith & Christopher Timmins, 2010. "The New Economics of Equilibrium Sorting and its Transformational Role for Policy Evaluation," NBER Working Papers 16349, National Bureau of Economic Research, Inc.
    13. Mitchell R. Livy, 2020. "Extreme natural events are associated with significant economic losses and expected to increase in frequency and intensity with time. While previous research has primarily investigated singular event ," Economics Bulletin, AccessEcon, vol. 40(1), pages 665-678.
    14. Vanja WESTERBERG & Jette BREDAHL JACOBSEN & Robert LIFRAN, 2012. "The Multi-faceted Nature of Preferences for Offshore Wind Farm Siting," Working Papers 12-22, LAMETA, Universtiy of Montpellier, revised Jul 2012.
    15. Simora, Michael, 2017. "The effect of financial compensation on the acceptance of power lines: Evidence from a randomized discrete choice experiment in Germany," Ruhr Economic Papers 729, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Boyle, Kevin J. & Boatwright, Jessica & Brahma, Sreeya & Xu, Weibin, 2019. "NIMBY, not, in siting community wind farms," Resource and Energy Economics, Elsevier, vol. 57(C), pages 85-100.
    17. Simona Bigerna & Paolo Polinori, 2015. "Assessing the Determinants of Renewable Electricity Acceptance Integrating Meta-Analysis Regression and a Local Comprehensive Survey," Sustainability, MDPI, vol. 7(9), pages 1-24, August.
    18. Russell, Aaron & Bingaman, Samantha & Garcia, Hannah-Marie, 2021. "Threading a moving needle: The spatial dimensions characterizing US offshore wind policy drivers," Energy Policy, Elsevier, vol. 157(C).
    19. Livy, Mitchell R., 2018. "Intra-school district capitalization of property tax rates," Journal of Housing Economics, Elsevier, vol. 41(C), pages 227-236.
    20. García, Jorge H. & Cherry, Todd L. & Kallbekken, Steffen & Torvanger, Asbjørn, 2016. "Willingness to accept local wind energy development: Does the compensation mechanism matter?," Energy Policy, Elsevier, vol. 99(C), pages 165-173.

    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:88:y:2012:iii:1:p:571-588. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.