|
| In this article we quantify the marginal external effects of nearby land based wind turbines on
property prices capitalized through traded residential properties located within 2,500 meters
or less. We succeed in separating the effect of noise and visual pollution from wind turbines.
This was achieved by using a dataset covering 21 municipalities and consisting of 12,640
traded residential properties sold in the period 2000-2011. We model the hedonic price
function in two steps. First we detrend data across municipalities using a pooled cross
sectional model which allows for different price trends across municipalities. Second we
control for spatial autocorrelation by using explicit spatial models. Properties affected by
noise and visual pollution from wind turbines are identified using Geographical Information
Systems. Our results show that wind turbines have a significant negative impact on the price
schedule of neighboring residential properties. The visual pollution accounts for 3.15% of the
residential sales price. The price premium declines with distance by about 0.242% of the
sales price for every 100 meters. The effect of noise depends on the noise level emitted and
ranges from 3% to 7% of the sale price for residential properties. | |
|