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

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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 2 km 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.
Original languageEnglish
Pages (from-to)121-141
JournalJournal of Urban Economics
Volume96
Issue numberNovember
DOIs
Publication statusPublished - 2016

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