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Values in the Wind: A Hedonic Analysis of Wind Power Facilities

Land Economics, Forthcoming

41 Pages Posted: 6 Apr 2011 Last revised: 22 Mar 2015

Martin D. Heintzelman

Clarkson University School of Business

Carrie Tuttle

Clarkson University

Date Written: July 15, 2011

Abstract

The siting of wind facilities is extremely controversial. This paper uses data on 11,369 property transactions over 9 years in Northern New York to explore the effects of new wind facilities on property values. We use a repeat-sales framework to control for omitted variables and endogeneity biases. We find that nearby wind facilities significantly reduce property values. Decreasing the distance to the nearest turbine to 1 mile results in a decline in price of between 7.73% and 14.87%. These results indicate that there remains a need to compensate local homeowners/communities for allowing wind development within their borders.

Keywords: Wind Power, Renewable Energy, Hedonic Analysis

JEL Classification: Q2, Q42

Suggested Citation

Heintzelman, Martin D. and Tuttle, Carrie, Values in the Wind: A Hedonic Analysis of Wind Power Facilities (July 15, 2011). Land Economics, Forthcoming . Available at SSRN: https://ssrn.com/abstract=1803601

Martin D. Heintzelman (Contact Author)

Clarkson University School of Business ( email )

Potsdam, NY 13699-5780
United States

Carrie Tuttle

Clarkson University ( email )

United States

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