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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
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    References listed on IDEAS

    as
    1. 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.
    2. repec:asg:wpaper:1013 is not listed on IDEAS
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
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    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.

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    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

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