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

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Taken together, these results suggest that sales volumes are not conclusively affected by the announcement and presence <strong>of</strong> the wind facilities analyzed in this report. At least among this sample, sales volumes increased in all distance bands after the announcement and construction <strong>of</strong> the wind facilities. If this result was driven by the presence <strong>of</strong> the wind facilities, however, one would expect that such impacts would be particularly severe for those homes in close proximity to wind facilities. In other words, sales volumes would be the most affected inside <strong>of</strong> one mile, where views <strong>of</strong> the turbines are more frequent and where other potential nuisances are more noticeable than in areas farther away. This is not borne out in the data - no statistically significant differences are found for sales volumes inside <strong>of</strong> one mile as compared to those between one and three miles, and sales volumes outside <strong>of</strong> three miles are higher still. <strong>The</strong>refore, on the whole, this analysis is unable to find persuasive evidence that wind facilities have a widespread and identifiable impact on overall residential sales volumes. It is again concluded that neither Area nor Nuisance Stigma are in evidence in this analysis. 68
8. <strong>Wind</strong> <strong>Projects</strong> and Property Values: Summary <strong>of</strong> Key Results This report has extensively investigated the potential impacts <strong>of</strong> wind power facilities on the value (i.e., sales prices) <strong>of</strong> residential properties that are in proximity to and/or that have a view <strong>of</strong> those wind facilities. In so doing, three different potential impacts <strong>of</strong> wind projects on property values have been identified and analyzed: Area Stigma, Scenic Vista Stigma, and Nuisance Stigma. To assess these potential impacts, a primary (Base) hedonic model has been applied, seven alternative hedonic models have been explored, a repeat sales analysis has been conducted, and possible impacts on sales volumes have been evaluated. Table 33 outlines the resulting ten tests conducted in this report, identifies which <strong>of</strong> the three potential stigmas those tests were designed to investigate, and summarizes the results <strong>of</strong> those investigations. This section synthesizes these key results, organized around the three potential stigmas. Table 33: <strong>Impact</strong> <strong>of</strong> <strong>Wind</strong> <strong>Projects</strong> on Property Values: Summary <strong>of</strong> Key Results Is there statistical evidence <strong>of</strong>: Statistical Model Area Stigma? Scenic Vista Stigma? Nuisance Stigma? Section Reference Base Model No No No Section 4 View Stability Not tested No Not tested Section 5.1 Distance Stability No Not tested No Section 5.1 Continuous Distance No No No Section 5.2 All Sales No No Limited Section 5.3 Temporal Aspects No No No Section 5.4 Orientation No No No Section 5.5 Overlap No Limited No Section 5.6 Repeat Sales No Limited No Section 6 Sales Volume No Not tested No Section 7 "No"…………………. "Yes"………………… "Limited"……………. "Not tested"………… No statistical evidence <strong>of</strong> a negative impact Strong statistical evidence <strong>of</strong> a negative impact Limited and inconsistent statistical evidence <strong>of</strong> a negative impact This model did not test for this stigma 8.1. Area Stigma Area Stigma is defined as a concern that the general area surrounding a wind energy facility will appear more developed, which may adversely affect home values in the local community regardless <strong>of</strong> whether any individual home has a view <strong>of</strong> the wind turbines. Though these impacts might be expected to be especially severe at close range to the turbines, the impacts could conceivably extend for a number <strong>of</strong> miles around a wind facility. Modern wind turbines are visible from well outside <strong>of</strong> five miles in many cases, so if an Area Stigma exists, it is possible that all <strong>of</strong> the homes in the study areas inside <strong>of</strong> five miles would be affected. As summarized in Table 33, Area Stigma is investigated with the Base, Distance Stability, Continuous Distance, All Sales, Temporal Aspects, Orientation, and Overlap hedonic models. It is also tested, somewhat differently, with the Repeat Sales and Sales Volume analyses. In each case, if an Area Stigma exists, it is expected that the sales prices (and/or sales volume) <strong>of</strong> homes 69
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LBNL-2829E ERNEST ORLANDO LAWRENCE
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LBNL-2829E The <st
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Table of Contents
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List of Tables Tab
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Acknowledgements The</stron
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This report builds on the previous
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Table ES-2: Impact
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Figure ES-3: Base Model Results: Sc
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In the Distance Stability Model, fo
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1. Introduction Wind</stron
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model 7 and uses various forms <str
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A particularly useful application <
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Using different statistical methods
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Table 1: Summary of</strong
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By using a variety of</stro
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minimum of 164 fee
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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
Page 65 and 66: Turning to the coefficient differen
Page 67 and 68: Table 21: Frequency Crosstab <stron
Page 69 and 70: 5.6.1. Dataset and Model Form Data
Page 71 and 72: with the scenic vista. In other wor
Page 73 and 74: 6. Repeat Sales Analysis In general
Page 75 and 76: Table 27: List of
Page 77 and 78: adjustment, and represent another t
Page 79 and 80: that are located within one mile <s
Page 81 and 82: 7. Sales Volume Analysis Th
Page 83 and 84: Figure 11: Sales Volumes by PERIOD
Page 85: three years before announcement), a
Page 89 and 90: Drawing from the previous literatur
Page 91 and 92: Taken together, the results from al
Page 93 and 94: 9. Conclusions Though surveys gener
Page 95 and 96: Davis, L. W. (2008) The</st
Page 97 and 98: LeSage, J. P. (1999) The</s
Page 99 and 100: Watson, M. (2005) Estimation <stron
Page 101 and 102: Figure A - 1: Map of</stron
Page 103 and 104: all very small communities with lit
Page 105 and 106: A.2 TXHC Study Area: Howard County
Page 107 and 108: Census Statistics Name Type 2007 Po
Page 109 and 110: Data Collection and Summary County
Page 111 and 112: A.4 IABV Study Area: Buena Vista Co
Page 113 and 114: Variables of Inter
Page 115 and 116: facilities than the towns o
Page 117 and 118: A.6 WIKCDC Study Area: Kewaunee and
Page 121 and 122: elatively high elevations o
Page 123 and 124: A.8 PAWC Study Area: Wayne County (
Page 125 and 126: Census Statistics Name Type 2007 Po
Page 127 and 128: ural landscapes, with the largest p
Page 129 and 130: A.10 NYMC Study Area: Madison Count
Page 133 and 134: account, combined with the determin
Page 135 and 136: 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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