The Impact of Wind Power Projects on Residential Property Values ...

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facilities measurably and broadly impact residential sales prices (see Figure ES-1 and later results). Figure ES-1: Base Model Results: Area and Nuisance Stigma Average Percentage Differences 25% 20% 15% 10% 5% 0% -5% -10% -15% Average Percentage Differences In Sales Prices As Compared To Reference Category No differences are statistically significant at the 10% level -5.3% -5.5% -0.4% 1.6% Reference Category -20% -25% Within 3000 Feet (n=67) Between 3000 Feet and 1 Mile (n=58) Between 1 and 3 Miles (n=2019) Between 3 and 5 Miles (n=1923) Outside 5 Miles (n=870) <strong>The</strong> reference category consists <strong>of</strong> transactions for homes situated more than five miles from the nearest turbine, and that occured after construction began on the wind facility Figure ES-2: Base Model Results: Scenic Vista Average Percentage Differences 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% Average Percentage Differences In Sales Prices As Compared To Reference Category All differences are statistically significant at the 1% level -21% -8% Poor Vista (n=310) Below Average Vista (n=2857) Reference Category Average Vista (n=1247) 10% 13% Above Average Vista (n=448) Premium Vista (n=75) <strong>The</strong> reference category consists <strong>of</strong> transactions for homes with an Average Vista, and that occured after construction began on the wind facility xiii
Figure ES-3: Base Model Results: Scenic Vista Stigma Average Percentage Differences 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% Average Percentage Differences In Sales Prices As Compared To Reference Category No differences are statistically significant at the 10% level Reference Category No View <strong>of</strong> Turbines (n=4207) -1.2% Minor View (n=561) 1.7% Moderate View (n=106) -0.5% Substantial View (n=35) 2.1% Extreme View (n=28) <strong>The</strong> reference category consists <strong>of</strong> transactions for homes without a view <strong>of</strong> the turbines, and that occured after construction began on the wind facility <strong>The</strong> seven alternative hedonic models and the additional analysis contained in the Repeat Sales and Sales Volume Models (see Table ES-2) provide a fuller picture <strong>of</strong> the three stigmas and the robustness <strong>of</strong> the Base Model results. Area Stigma: Other Model Results Concentrating first on Area Stigma, the results from all <strong>of</strong> the models are similar: there is no statistical evidence <strong>of</strong> a widespread Area Stigma among the homes in this sample. Homes in the study areas analyzed here do not appear to be measurably stigmatized by the arrival <strong>of</strong> a wind facility, regardless <strong>of</strong> when those homes sold in the wind project development process and regardless <strong>of</strong> whether the homes are located one mile or five miles away from the nearest facility. In the All Sales Model, for example, after adjusting for inflation, 4 homes that sold after wind facility construction and that had no view <strong>of</strong> the turbines are found to have transacted for higher prices - not lower - than those homes that sold prior to wind facility construction. Moreover, in the Temporal Aspects Model, homes that sold more than two years prior to the announcement <strong>of</strong> the wind facility and that were located more than five miles from where the turbines were eventually located are found to have transacted for lower prices - not higher - than homes situated closer to the turbines and that sold at any time after the announcement and construction <strong>of</strong> the wind facility (see Figure ES - 4). Further, in the Repeat Sales Model, homes located near the wind facilities that transacted more than once were found to have appreciated between those sales by an amount that was no different from that experienced by homes located in an area 4 All sales prices in all models are adjusted for inflation, but because this model (and the Temporal Aspects Model) deals with time explicitly, it is mentioned specifically here. xiv
Page 1 and 2: LBNL-2829E ERNEST ORLANDO LAWRENCE
Page 3 and 4: LBNL-2829E The <st
Page 5 and 6: Table of Contents
Page 7 and 8: List of Tables Tab
Page 9 and 10: Acknowledgements The</stron
Page 11 and 12: This report builds on the previous
Page 13: Table ES-2: Impact
Page 17 and 18: In the Distance Stability Model, fo
Page 19 and 20: 1. Introduction Wind</stron
Page 21 and 22: model 7 and uses various forms <str
Page 23 and 24: A particularly useful application <
Page 25 and 26: Using different statistical methods
Page 27 and 28: Table 1: Summary of</strong
Page 29 and 30: By using a variety of</stro
Page 31 and 32: minimum of 164 fee
Page 33 and 34: 3.2.2. GIS Data GIS data on parcel
Page 35 and 36: In addition to the qualitative VIEW
Page 37 and 38: with the rest of t
Page 39 and 40: Figure 4: Frequency of</str
Page 41 and 42: 4. Base Hedonic Model This section
Page 43 and 44: impose the least structure on the u
Page 45 and 46: of the home, home
Page 47 and 48: etween the reference study area (WA
Page 49 and 50: Figure 7: Results from the Base Mod
Page 51 and 52: 5. Alternative Hedonic Models <stro
Page 53 and 54: concentrated inside of</str
Page 55 and 56: all other components are as defined
Page 57 and 58: the distance from them might not oc
Page 59 and 60: explanation is that the additional
Page 61 and 62: 6) More than four years after const
Page 63 and 64: Table 19: Results from Temporal Asp
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Turning to the coefficient differen
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Table 21: Frequency Crosstab <stron
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5.6.1. Dataset and Model Form Data
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with the scenic vista. In other wor
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6. Repeat Sales Analysis In general
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Table 27: List of
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adjustment, and represent another t
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that are located within one mile <s
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7. Sales Volume Analysis Th
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Figure 11: Sales Volumes by PERIOD
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three years before announcement), a
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8. Wind Pr
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Drawing from the previous literatur
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Taken together, the results from al
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9. Conclusions Though surveys gener
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Davis, L. W. (2008) The</st
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LeSage, J. P. (1999) The</s
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Watson, M. (2005) Estimation <stron
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Figure A - 1: Map of</stron
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all very small communities with lit
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A.2 TXHC Study Area: Howard County
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Census Statistics Name Type 2007 Po
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Data Collection and Summary County
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A.4 IABV Study Area: Buena Vista Co
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Variables of Inter
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facilities than the towns o
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A.6 WIKCDC Study Area: Kewaunee and
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Variables of Inter
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elatively high elevations o
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A.8 PAWC Study Area: Wayne County (
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Census Statistics Name Type 2007 Po
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ural landscapes, with the largest p
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A.10 NYMC Study Area: Madison Count
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Variables of Inter
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account, combined with the determin
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Appendix C: Field Data Collection I
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Figure A - 14: Field Data Collectio
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ABOVE AVERAGE VISTA PREMIUM VISTA 1
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EXTREME VIEW 6 turbines visible fro
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5 is a vector of d
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values, that effect seems likely to
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unrestricted Home and Site Characte
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with coefficients above zero and th
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Figure A - 15: Histogram of
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The M Distance his
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sold within the preceding six month
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Appendix H: Alternative Models: Ful
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Table A - 8: Full Results for the C
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Table A - 10: Full Results for the
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Table A - 11: Full Results for the
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