The Effect of Undesirable Land Use Facilities on Property Values: New Evidence from Australian Regional Fossil-Fired Plants

Renuka K. Ganegodage, Peyman Khezr and Rabindra Nepal
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Renuka K. Ganegodage: School of Economics, The University of Queensland, St Lucia, Brisbane, Australia

No 569, Discussion Papers Series from University of Queensland, School of Economics

Abstract: This paper investigates the effect of fossil-fired power plants on the value of neighborhood properties in the state of New South Wales, Australia. Fossil-fuels accounts for significant proportion of electricity generation in Australia. Thus, there are growing community concerns regarding the possible negative environmental effects of these power plants given the high level of emission produced by these plants. We use a comprehensive data with the exact location of each property to estimate the effect of an existing fossil-fuel power plant on the value of neighborhood properties. We use spatial econometric models to estimate these effects with controls over several characteristics of properties. Our results suggest that coal-fired power plants have significant negative effects on property values within a specific radius. These effects are less but still negative for gas and gas reciprocating power plants.

Keywords: Fossil-fired; power plants; emissions; property price (search for similar items in EconPapers)
JEL-codes: Q51 Q53 R11 R30 (search for similar items in EconPapers)
Date: 2016-09-12
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:qld:uq2004:569

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