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

the distance from them might not occur at the same point in the development process.
Specifically, it is assumed that VIEW effects largely occur after the turbines are erected, in the
post-construction period, but that DISTANCE effects might occur in the post-announcement-preconstruction
timeframe. For example, after a wind facility is announced, it is not atypical for a
map <strong>of</strong> the expected locations <strong>of</strong> the turbines to be circulated in the community, allowing home
buyers and sellers to assess the distance <strong>of</strong> the planned facility from homes. Because <strong>of</strong> this
assumed difference in when awareness begins for VIEW and DISTANCE, the DISTANCE
variable is populated for transactions occurring in the post-announcement-pre-construction
period as well as the post-construction period (see Table 14 below), but the VIEW variable is
populated only for transactions in the post-construction period – as they were in the Base
Model. 76
Table 14: Frequency Summary for DISTANCE in All Sales Model
< 0.57 Miles 0.57 - 1 Miles 1 - 3 Miles 3 - 5 Miles > 5 Miles Total
Post-Construction 67 58 2019 1923 870 4937
Post-Announcement-Pre-Construction 13 7 340 277 130 767
TOTAL 80 65 2359 2200 1000 5704
One beneficial consequence <strong>of</strong> the differences in reference categories for the VIEW and
DISTANCE variables in this model, as opposed to the Base Model, is that this model can
accommodate all <strong>of</strong> the possible VIEW and DISTANCE categories, including NO VIEW
transactions and transactions <strong>of</strong> homes outside <strong>of</strong> five miles. Because <strong>of</strong> the inclusion <strong>of</strong> these
VIEW and DISTANCE categories, the tests to investigate Area, Scenic Vista, and Nuisance
Stigmas are slightly different in this model than in the Base Model. For Area Stigma, for
example, how homes with no view <strong>of</strong> the turbines fared can now be tested; if they are adversely
affected by the presence <strong>of</strong> the wind facility, then this would imply a pervasive Area Stigma
impact. For Scenic Vista Stigma, the VIEW coefficients (MINOR, MODERATE, etc.) can be
compared (using a t-Test) to the NO VIEW results; if they are significantly different, a Scenic
Vista Stigma would be an obvious culprit. Finally, for Nuisance Stigma, the DISTANCE
coefficients inside <strong>of</strong> one mile can be compared (using a t-Test) to those outside <strong>of</strong> five miles; if
there is a significant difference between these two categories <strong>of</strong> homes, then homes are likely
affected by their proximity to the wind facility.
5.3.2. Analysis <strong>of</strong> Results
Results for the variables <strong>of</strong> interest for this hedonic model are summarized in Table 15, and Base
Model results are shown for comparison purposes. (For brevity, the full set <strong>of</strong> results for the
model is not shown in Table 15, but is instead included in Appendix H.) <strong>The</strong> adjusted R 2 for the
model is 0.75, down slightly from 0.77 for the Base Model, and indicating that this model has
slightly more difficulty (i.e. less explanatory power) modeling transactions that occurred pre-
76 It is conceivable that VIEW effects could occur before the turbines are constructed. In some cases, for example,
developers will simulate what the project will look like after construction during the post-announcement but preconstruction
timeframe. In these situations, home buyers and sellers might adjust home values accordingly based on
the expected views <strong>of</strong> turbines. It is assumed, however, that such adjustments are likely to be reasonably rare, and
VIEW effects are therefore estimated using only post-construction sales.
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