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

<strong>The</strong> coefficients for the variables <strong>of</strong> interest ( 6 ) do not meet the a priori expectations. <strong>The</strong>
estimated effect for SIDE ORIENTATION, instead <strong>of</strong> being close to zero, is -3% (p value 0.36),
while BACK and FRONT, instead <strong>of</strong> being negative and larger, are estimated at 3% (p value
0.37) and -1% (p value 0.72), respectively. None <strong>of</strong> these variables are found to be even
marginally statistically significant, however, and based on these results, it is concluded that there
is no evidence that a home’s orientation to a wind facility affects property values in a measurable
way. Further, as with previous models, no statistical evidence <strong>of</strong> a Scenic Vista Stigma is found
among this sample <strong>of</strong> sales transactions.
Table 23: Results from Orientation Model
Base Model
Orientation Model
Variables <strong>of</strong> Interest Coef SE p Value n Coef SE p Value n
No View Omitted Omitted Omitted 4207 Omitted Omitted Omitted 4207
Minor View -0.01 0.01 0.39 561 -0.01 0.06 0.88 561
Moderate View 0.02 0.03 0.57 106 0.00 0.06 0.96 106
Substantial View -0.01 0.07 0.92 35 -0.01 0.09 0.85 35
Extreme View 0.02 0.09 0.77 28 0.02 0.17 0.84 28
Inside 3000 Feet -0.05 0.06 0.31 67 -0.04 0.07 0.46 67
Between 3000 Feet and 1 Mile -0.05 0.05 0.20 58 -0.05 0.05 0.26 58
Between 1 and 3 Miles 0.00 0.02 0.80 2019 0.00 0.02 0.83 2019
Between 3 and 5 Miles 0.02 0.01 0.26 1923 0.02 0.01 0.26 1923
Outside 5 Miles Omitted Omitted Omitted 870 Omitted Omitted Omitted 870
Front Orientation -0.01 0.06 0.72 294
Back Orientation 0.03 0.06 0.37 280
Side Orientation -0.03 0.06 0.36 253
"Omitted" = reference category for fixed effects variables. "n" = number <strong>of</strong> cases in category when category = "1"
Model Information
Model Equation Number 1 8
Dependent Variable
LN_SalePrice96
LN_SalePrice96
Number <strong>of</strong> Cases 4937 4937
Number <strong>of</strong> Predictors (k) 37 40
F Statistic 442.8 410.0
Adjusted R Squared 0.77 0.77
5.6. Overlap Model
<strong>The</strong> Orientation Model, presented above, investigated, to some degree, how the potential effects
<strong>of</strong> wind turbines might be impacted by how a home is oriented to the surrounding environment.
In so doing, this model began to peel back the relationship between VIEW and VISTA, but
stopped short <strong>of</strong> looking at the relationship directly. It would be quite useful, though, to
understand the explicit relationship between the VISTA and VIEW variables. In particular, one
might expect that views <strong>of</strong> wind turbines would have a particularly significant impact on
residential property values when those views strongly overlap (“OVERLAP”) the prominent
scenic vista from a home. To investigate this possibility directly, and, in general, the relationship
between VIEW and VISTA, a parameter for OVERLAP is included in the model.
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