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Renewable energy and negative externalities: The effect of wind turbines on house prices

Martijn Dröes () and Hans R.A. Koster

Journal of Urban Economics, 2016, vol. 96, issue C, 121-141

Abstract: In many countries, wind turbines are constructed as part of a strategy to reduce dependence on fossil fuels. In this paper, we measure the external effect of wind turbines on the transaction prices of nearby houses. A unique Dutch house price dataset covering the period 1985–2011 is used, as well as the exact location of all wind turbines that were built in the Netherlands. Using a difference-in-differences methodology we find a 1.4% price decrease for houses within 2km of a turbine. There is also evidence for anticipation effects a few years before placement of a turbine. The effect is larger for taller turbines and in urban areas. Especially the first turbine built close to a house has a negative effect on its price.

Keywords: Renewable energy; Wind turbines; Externalities; House prices (search for similar items in EconPapers)
JEL-codes: R31 Q42 Q15 L94 (search for similar items in EconPapers)
Date: 2016
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Related works:
Working Paper: Renewable Energy and Negative Externalities: The Effect of Wind Turbines on House Prices (2014) Downloads
Working Paper: Renewable Energy and Negative Externalities: The Effect of Wind Turbines on House Prices (2014) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:96:y:2016:i:c:p:121-141

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