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

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0 1 2 3 4 5<br />

ln P N S X VIEW DISTANCE<br />

<br />

<br />

o<br />

6<br />

<br />

s k v d<br />

ORIENTATION <br />

where<br />

ORIENTATION is a vector <str<strong>on</strong>g>of</str<strong>on</strong>g> o ORIENTATION variables (e.g., SIDE, FRONT, and BACK),<br />

6 is a vector <str<strong>on</strong>g>of</str<strong>on</strong>g> o parameter estimates for ORIENTATION variables, and<br />

all other comp<strong>on</strong>ents are as defined in equati<strong>on</strong> (1). 84<br />

<str<strong>on</strong>g>The</str<strong>on</strong>g> ORIENTATION categories include FRONT, BACK, and SIDE, and are defined as follows:<br />

SIDE: <str<strong>on</strong>g>The</str<strong>on</strong>g> orientati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> the home to the view <str<strong>on</strong>g>of</str<strong>on</strong>g> the turbines is from the side.<br />

FRONT: <str<strong>on</strong>g>The</str<strong>on</strong>g> orientati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> the home to the view <str<strong>on</strong>g>of</str<strong>on</strong>g> the turbines is from the fr<strong>on</strong>t.<br />

BACK: <str<strong>on</strong>g>The</str<strong>on</strong>g> orientati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> the home to the view <str<strong>on</strong>g>of</str<strong>on</strong>g> the turbines is from the back.<br />

<str<strong>on</strong>g>The</str<strong>on</strong>g> orientati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> the home to the view <str<strong>on</strong>g>of</str<strong>on</strong>g> the wind facilities was determined in the course <str<strong>on</strong>g>of</str<strong>on</strong>g> the<br />

field visits to each home. If more than <strong>on</strong>e orientati<strong>on</strong> to the turbines best described the home<br />

(e.g., back and side, or fr<strong>on</strong>t, back, and side) they were coded as such (e.g., turbines visible from<br />

back and side: SIDE = 1; BACK = 1; FRONT = 0). 85<br />

Not surprisingly, ORIENTATION is related to VIEW. Table 21 and Table 22 provide frequency<br />

and percentage crosstabs <str<strong>on</strong>g>of</str<strong>on</strong>g> ORIENTATION and VIEW. As shown, those homes with more<br />

dramatic views <str<strong>on</strong>g>of</str<strong>on</strong>g> the turbines generally have more ORIENTATION ratings applied to them. For<br />

instance, 25 out <str<strong>on</strong>g>of</str<strong>on</strong>g> 28 EXTREME VIEW homes have all three ORIENTATION ratings (i.e.,<br />

FRONT, BACK, and SIDE). Virtually all <str<strong>on</strong>g>of</str<strong>on</strong>g> the MINOR VIEW homes, <strong>on</strong> the other hand, have<br />

<strong>on</strong>ly <strong>on</strong>e ORIENTATION. Further, MINOR VIEW homes have roughly evenly spread<br />

orientati<strong>on</strong>s to the turbines across the various possible categories <str<strong>on</strong>g>of</str<strong>on</strong>g> FRONT, BACK, and SIDE.<br />

C<strong>on</strong>versely, a majority <str<strong>on</strong>g>of</str<strong>on</strong>g> the MODERATE and SUBSTANTIAL VIEW ratings coincide with an<br />

ORIENTATION from the back <str<strong>on</strong>g>of</str<strong>on</strong>g> the house. 86<br />

(8)<br />

84 Ideally, <strong>on</strong>e would enter ORIENTATION in the model through an interacti<strong>on</strong> with VIEW. <str<strong>on</strong>g>The</str<strong>on</strong>g>re are two ways<br />

that could be accomplished: either with the c<strong>on</strong>structi<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> multiple fixed effects (“dummy”) variables, which<br />

capture each sub-category <str<strong>on</strong>g>of</str<strong>on</strong>g> VIEW and ORIENTATION, or through a semi-c<strong>on</strong>tinuous interacti<strong>on</strong> variable, which<br />

would be created by multiplying the ordered categorical variable VIEW by an ordered categorical variable<br />

ORIENTATION. Both interacti<strong>on</strong> scenarios are problematic, the former because it requires increasingly small<br />

subsets <str<strong>on</strong>g>of</str<strong>on</strong>g> data, which create unstable coefficient estimates, and the latter because there are no a priori expectati<strong>on</strong>s<br />

for the ordering <str<strong>on</strong>g>of</str<strong>on</strong>g> an ordered categorical ORIENTATION variable and therefore n<strong>on</strong>e could be created and used for<br />

the interacti<strong>on</strong>. As a result, no interacti<strong>on</strong> between the two variables is reported here.<br />

85 An “Angle” orientati<strong>on</strong> was also possible, which was defined as being between Fr<strong>on</strong>t and Side or Back and Side.<br />

An Angle orientati<strong>on</strong> was also possible in combinati<strong>on</strong> with Back or Fr<strong>on</strong>t (e.g., Back-Angle or Fr<strong>on</strong>t-Angle). In<br />

this latter case, the orientati<strong>on</strong> was coded as <strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> the two prominent orientati<strong>on</strong>s (e.g., Back or Fr<strong>on</strong>t). An Angle<br />

orientati<strong>on</strong>, not in combinati<strong>on</strong> with Fr<strong>on</strong>t or Back, was coded as Side.<br />

86 <str<strong>on</strong>g>The</str<strong>on</strong>g> prevalence <str<strong>on</strong>g>of</str<strong>on</strong>g> BACK orientati<strong>on</strong>s for MODERATE and SUBSTANTIAL VIEW homes may be because<br />

BACK views might more-frequently be kept without obstructi<strong>on</strong>, relative to SIDE views.<br />

48

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