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

Martijn I. Dröes; Hans R.A. Koster

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.

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Year of publication:	2014
Authors:	Dröes, Martijn I. ; Koster, Hans
Publisher:	Rotterdam [u.a.] : Tinbergen Inst.
Subject:	renewable energy \| wind turbines \| externalities \| house prices \| Immobilienpreis \| Real estate price \| Erneuerbare Energie \| Renewable energy \| Windenergieanlage \| Wind turbine \| Windenergie \| Wind energy \| Externer Effekt \| Externalities \| Förderung erneuerbarer Energien \| Renewable energy policy \| Dänemark \| Denmark