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The impact of wind farms on property values: A locally weighted hedonic pricing model
Author(s) -
Sunak Yasin,
Madlener Reinhard
Publication year - 2017
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12197
Subject(s) - hedonic pricing , property value , visibility , residential property , econometrics , wind power , economics , geography , economic geography , meteorology , engineering , real estate , finance , electrical engineering
Wind power in Germany has triggered much debate regarding the impacts on landscape and vista. This paper investigates the impact of wind farms on surrounding property values using a hedonic pricing model in a spatial fixed effects and a locally weighted specification. We find that proximity generally causes negative impacts on the surrounding property values. Thereby, local statistics reveal varying spatial patterns across the study area and provide evidence for visibility effects as being a key driver of negative impacts captured by distance measures. The analysis was performed for a study area in Germany.