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Renewable Energy and Negative Externalities: The Effect of Wind Turbines on House Prices

Martijn Dröes and Hans Koster

No 14-124/VIII, Tinbergen Institute Discussion Papers from Tinbergen Institute

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 house price dataset covering the period 1985-2011 is used, including the exact location of all wind turbines built in the Netherlands. We find that house prices within a two kilometer radius of a turbine, after it has been constructed, decrease by about 1.4 to 2.3 percent on average. We find anticipation effects up to three years in advance of the construction of a wind turbine. We provide further evidence that the external costs of a wind turbine are at least 10 percent of its construction cost.

Keywords: renewable energy; wind turbines; externalities; house prices (search for similar items in EconPapers)
JEL-codes: L94 Q15 Q42 R31 (search for similar items in EconPapers)
Date: 2014-09-18
New Economics Papers: this item is included in nep-ene and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://papers.tinbergen.nl/14124.pdf (application/pdf)

Related works:
Journal Article: Renewable energy and negative externalities: The effect of wind turbines on house prices (2016) 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:tin:wpaper:20140124

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