IDEAS home Printed from https://ideas.repec.org/a/spr/envpol/v20y2018i1d10.1007_s10018-017-0190-9.html
   My bibliography  Save this article

The impact of cell phone towers on house prices: evidence from Brisbane, Australia

Author

Listed:
  • Darshana Rajapaksa

    (Queensland University of Technology)

  • Wasantha Athukorala

    (University of Peradeniya)

  • Shunsuke Managi

    (Kyushu University)

  • Prasad Neelawala

    (Business Management and Marketing)

  • Boon Lee

    (Queensland University of Technology)

  • Viet-Ngu Hoang

    (Queensland University of Technology)

  • Clevo Wilson

    (Queensland University of Technology)

Abstract

The growing public pressure against the spread of cell phone towers in urban areas has created a need to understand their impact on adjacent house prices. A few existing studies are, however, controversial in their methodology and inconclusive in their results. Therefore, our study on the effect of cell phone towers on house prices is designed to avoid these deficiencies. Property transaction data collected from two suburbs within the Brisbane City Council were analysed adopting the spatial hedonic property valuation model. The estimated models were statistically significant and were largely in line with theoretical expectations. The results revealed that proximity to cell phone towers negatively affects house values, decreasing as the distance from the tower increases. A suitable compensation programme for nearby property owners is, therefore, suggested as being an appropriate policy response.

Suggested Citation

  • Darshana Rajapaksa & Wasantha Athukorala & Shunsuke Managi & Prasad Neelawala & Boon Lee & Viet-Ngu Hoang & Clevo Wilson, 2018. "The impact of cell phone towers on house prices: evidence from Brisbane, Australia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 211-224, January.
    • Handle: RePEc:spr:envpol:v:20:y:2018:i:1:d:10.1007_s10018-017-0190-9
    DOI: 10.1007/s10018-017-0190-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10018-017-0190-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10018-017-0190-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Olga Filippova & Michael Rehm, 2011. "The impact of proximity to cell phone towers on residential property values," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 4(3), pages 244-267, August.
    2. Francois Des Rosiers, 2002. "Power Lines, Visual Encumbrance and House Values: A Microspatial Approach to Impact Measurement," Journal of Real Estate Research, American Real Estate Society, vol. 23(3), pages 275-302.
    3. Paul Frijters & Benno Torgler & Darshana Rajapaksa & Clevo Wilson & Shunsuke Managi & Vincent Hoang & Boon Lee, 2016. "Flood Risk Information, Actual Floods and Property Values: A Quasi-Experimental Analysis," The Economic Record, The Economic Society of Australia, vol. 92, pages 52-67, June.
    4. Cameron, Trudy Ann, 2006. "Directional heterogeneity in distance profiles in hedonic property value models," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 26-45, January.
    5. Wasantha Athukorala & Wade Martin & Prasad Neelawala & Darshana Rajapaksa & Clevo Wilson, 2016. "Impact Of Wildfires And Floods On Property Values: A Before And After Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-23, March.
    6. repec:asg:wpaper:1013 is not listed on IDEAS
    7. Bin, Okmyung & Landry, Craig E., 2013. "Changes in implicit flood risk premiums: Empirical evidence from the housing market," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 361-376.
    8. Craig E. Landry & Paul Hindsley, 2011. "Valuing Beach Quality with Hedonic Property Models," Land Economics, University of Wisconsin Press, vol. 87(1), pages 92-108.
    9. Stanley W. Hamilton & Gregory M. Schwann, 1995. "Do High Voltage Electric Transmission Lines Affect Property Value?," Land Economics, University of Wisconsin Press, vol. 71(4), pages 436-444.
    10. Darren Hayunga & R. Pace, 2010. "Spatial Statistics Applied to Commercial Real Estate," The Journal of Real Estate Finance and Economics, Springer, vol. 41(2), pages 103-125, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shibly Shahrier & Koji Kotani, 2019. "Natural disaster mitigation through voluntary donations in a developing country: the case of Bangladesh," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(1), pages 37-60, January.

    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. Hein, Walter & Wilson, Clevo & Lee, Boon & Rajapaksa, Darshana & de Moel, Hans & Athukorala, Wasantha & Managi, Shunsuke, 2019. "Climate change and natural disasters: Government mitigation activities and public property demand response," Land Use Policy, Elsevier, vol. 82(C), pages 436-443.
    2. Abbie A. Rogers & Fiona L. Dempster & Jacob I. Hawkins & Robert J. Johnston & Peter C. Boxall & John Rolfe & Marit E. Kragt & Michael P. Burton & David J. Pannell, 2019. "Valuing non-market economic impacts from natural hazards," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 99(2), pages 1131-1161, November.
    3. Athukorala, Wasantha & Martin, Wade & Wilson, Clevo & Rajapaksa, Darshana, 2019. "Valuing bushfire risk to homeowners: Hedonic property values study in Queensland, Australia," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 44-56.
    4. Rajapaksa, Darshana & Zhu, Min & Lee, Boon & Hoang, Viet-Ngu & Wilson, Clevo & Managi, Shunsuke, 2017. "The impact of flood dynamics on property values," Land Use Policy, Elsevier, vol. 69(C), pages 317-325.
    5. Benjamin Wirth & Andreas Mense, 2014. "Flat Prices, Cell Phone Base Stations, and Network Structure," ERSA conference papers ersa14p1552, European Regional Science Association.
    6. 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).
    7. Patrick Doupe & Leo Dobes & Frank Jotzo, 2019. "Improving Understanding of Flood Risk: the Effects of Lowering the Cost of Accessing Flood Risk Information," Economics of Disasters and Climate Change, Springer, vol. 3(2), pages 101-117, July.
    8. Olivier JOALLAND & Tina RAMBONILAZA, 2017. "Assessing the impact of renewable energy infrastructure on the “tourist value” in rural landscapes: a spatial hedonic approach," Cahiers du GREThA (2007-2019) 2017-10, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    9. Fenrick, Steve A. & Getachew, Lullit, 2012. "Cost and reliability comparisons of underground and overhead power lines," Utilities Policy, Elsevier, vol. 20(1), pages 31-37.
    10. Netusil, Noelwah R. & Moeltner, Klaus & Jarrad, Maya, 2019. "Floodplain designation and property sale prices in an urban watershed," Land Use Policy, Elsevier, vol. 88(C).
    11. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2008. "Valuation of Environmental Goods in Profit and Non-Profit Housing Sectors: Evidence from the Rental Market in the City of Zurich," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 144(IV), pages 631-654, December.
    12. Meri Davlasheridze & Qin Fan, 2019. "Valuing Seawall Protection in the Wake of Hurricane Ike," Economics of Disasters and Climate Change, Springer, vol. 3(3), pages 257-279, October.
    13. Mense, Andreas & Wirth, Benjamin, 2014. "Flat Prices, Cell Phone Base Stations, and Network Structure: An Instrumental Variable Approach to Endogenous Locations," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100618, Verein für Socialpolitik / German Economic Association.
    14. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2012. "Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 387-397, January.
    15. Charles Sims & Sarah E. Null, 2019. "Climate Forecasts and Flood Mitigation," Southern Economic Journal, John Wiley & Sons, vol. 85(4), pages 1083-1107, April.
    16. McCoy, Shawn J. & Walsh, Randall P., 2018. "Wildfire risk, salience & housing demand," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 203-228.
    17. Beltrán, Allan & Maddison, David & Elliott, Robert, 2019. "The impact of flooding on property prices: A repeat-sales approach," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 62-86.
    18. Eunah Jung & Heeyeun Yoon, 2018. "Is Flood Risk Capitalized into Real Estate Market Value? A Mahalanobis-Metric Matching Approach to the Housing Market in Gyeonggi, South Korea," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    19. Jean Dubé & Maha AbdelHalim & Nicolas Devaux, 2021. "Evaluating the Impact of Floods on Housing Price Using a Spatial Matching Difference-In-Differences (SM-DID) Approach," Sustainability, MDPI, vol. 13(2), pages 1, January.
    20. Jain Niraj & Chileshe Roy A. & Muwowo Francis M & Mwewa Mambwe, 2019. "Perception Effects of High Voltage Transmission (HVT) Lines on Residential Property Values: Cases of Chalala, Libala South and Kamwala South Areas of Lusaka City-Zambia," Real Estate Management and Valuation, Sciendo, vol. 27(3), pages 31-41, September.

    More about this item

    Keywords

    Cell phone towers; Externalities; Hedonic property valuation; Spatial analysis;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    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:spr:envpol:v:20:y:2018:i:1:d:10.1007_s10018-017-0190-9. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.