No widespread impact of wind power projects on surrounding residential property values in the US

Dec 02, 2009

A major new Berkeley Lab report finds that proximity to wind energy facilities does not have a pervasive or widespread adverse effect on the property values of nearby homes.

Over 30,000 megawatts of capacity are installed across the United States and an increasing number of communities are considering new wind power facilities. Given these developments, there is an urgent need to empirically investigate typical community concerns about wind energy and thereby provide stakeholders involved in the wind project siting process a common base of knowledge. A major new report released today by the U.S. Department of Energy's Lawrence Berkeley National Laboratory evaluates one of those concerns, and finds that proximity to wind energy facilities does not have a pervasive or widespread adverse effect on the property values of nearby homes.

The new report, funded by the DOE, is based on site visits, data collection, and analysis of almost 7,500 single-family home sales, making it the most comprehensive and data-rich analysis to date on the potential impact of U.S. wind projects on residential property values.

"Neither the view of wind energy facilities nor the distance of the home to those facilities was found to have any consistent, measurable, and significant effect on the selling prices of nearby homes," says report author Ben Hoen, a consultant to Berkeley Lab. "No matter how we looked at the data, the same result kept coming back - no evidence of widespread impacts."

The team of researchers for the project collected data on homes situated within 10 miles of 24 existing wind facilities in nine different U.S. states; the closest home was 800 feet from a wind facility. Each home in the sample was visited to collect important on-site information such as whether were visible from the home. The home sales used in the study occurred between 1996 and 2007, spanning the period prior to the announcement of each wind energy facility to well after its construction and full-scale operation.

The conclusions of the study are drawn from eight different hedonic pricing models, as well as repeat sales and sales volume models. A hedonic model is a statistical analysis method used to estimate the impact of house characteristics on sales prices. None of the models uncovered conclusive statistical evidence of the existence of any widespread property value effects that might be present in communities surrounding wind energy facilities.

"It took three years to collect all of the data and analyze more than 50 different statistical model specifications," says co-author and project manager Ryan Wiser of Berkeley Lab, "but without that amount of effort, we would not have been confident we were giving stakeholders the best information possible."

"Though the analysis cannot dismiss the possibility that individual homes or small numbers of homes have been negatively impacted, it finds that if these impacts do exist, their frequency is too small to result in any widespread, statistically observable impact," he added.

The analysis revealed that home sales prices are very sensitive to the overall quality of the scenic vista from a property, but that a view of a wind energy facility did not demonstrably impact sales prices. The Berkeley Lab researchers also did not find statistically observable differences in prices for homes located closer to wind facilities than those located further away, or for homes that sold after the announcement or construction of a wind energy facility when compared to those selling prior to announcement. Even for those homes located within a one-mile distance of a wind project, the researchers found no persuasive evidence of a property value impact.

"Although studies that have investigated residential sales prices near conventional power plants, high voltage transmission lines, and roads have found some property value impacts," says co-author and San Diego State University Economics Department Chair Mark Thayer, "the same cannot be said for wind energy facilities, at least given our sample of transactions."

More information: The report, "The Impact of Projects on Residential Property Values in the United States: A Multi-Site Hedonic Analysis," can be downloaded from http://eetd.lbl.gov/ea/ems/re-pubs.html .

Source: Lawrence Berkeley National Laboratory (news : web)

Explore further: Pollution top concern for U.S. and Canadian citizens around Great Lakes

add to favorites email to friend print save as pdf

Related Stories

Wind turbines hazardous to birds, bats

Nov 13, 2007

Wind energy, a fast-growing sector of the U.S. energy industry, is taking a toll on nocturnal wildlife caught in the turbines, officials said.

Recycling wind turbines

Sep 21, 2007

The development of wind power promises much in terms of providing us with renewable energy for the future and wind turbines could be the most effective way to harness that power. Danish researchers now suggest that in order ...

Government blocks wind farm plans

Jun 01, 2006

The U.S. government has ordered work stopped on more than a dozen wind farms, saying the giant turbines might interfere with military radar.

Recommended for you

Obama launches measures to support solar energy in US

Apr 17, 2014

The White House Thursday announced a series of measures aimed at increasing solar energy production in the United States, particularly by encouraging the installation of solar panels in public spaces.

Tailored approach key to cookstove uptake

Apr 17, 2014

Worldwide, programs aiming to give safe, efficient cooking stoves to people in developing countries haven't had complete success—and local research has looked into why.

Wireless power transfer achieved at five-meter distance

Apr 17, 2014

The way electronic devices receive their power has changed tremendously over the past few decades, from wired to non-wired. Users today enjoy all kinds of wireless electronic gadgets including cell phones, ...

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

Doug_Huffman
not rated yet Dec 02, 2009
I see the explanation of "hedonic", "A hedonic model is a statistical analysis method used to estimate the impact of house characteristics on sales prices." but that barely fits the definitions available to me.

More news stories

Under some LED bulbs whites aren't 'whiter than white'

For years, companies have been adding whiteners to laundry detergent, paints, plastics, paper and fabrics to make whites look "whiter than white," but now, with a switch away from incandescent and fluorescent lighting, different ...

Hackathon team's GoogolPlex gives Siri extra powers

(Phys.org) —Four freshmen at the University of Pennsylvania have taken Apple's personal assistant Siri to behave as a graduate-level executive assistant which, when asked, is capable of adjusting the temperature ...

Researchers uncover likely creator of Bitcoin

The primary author of the celebrated Bitcoin paper, and therefore probable creator of Bitcoin, is most likely Nick Szabo, a blogger and former George Washington University law professor, according to students ...

Continents may be a key feature of Super-Earths

Huge Earth-like planets that have both continents and oceans may be better at harboring extraterrestrial life than those that are water-only worlds. A new study gives hope for the possibility that many super-Earth ...

Researchers successfully clone adult human stem cells

(Phys.org) —An international team of researchers, led by Robert Lanza, of Advanced Cell Technology, has announced that they have performed the first successful cloning of adult human skin cells into stem ...