Estimating the Disamenity Effect of Renewable Electricity Generation Sites
Taylor, Christopher W.
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Decarbonisation of worldwide energy supply is required to limit the risks of climate change and future energy security. This target is a priority for many institutions and governments. The benefits of renewable energy are clearly documented however disadvantages are less well evaluated. These include intermittency of natural resources and potential impacts landscape and hence property value. We implement three hedonic models, specifically Difference-in-Differences models, to ascertain the average treatment effect on properties within 2 kilometres of a renewable electricity installation. Our results display no significant treatment effect caused by the operation of biomass installations; we find some evidence for price increases near wind turbines. We find a positive impact on property prices nearby solar photovoltaic installations. Our results are mixed and do not display a conclusive negative impact after the construction of wind, biomass, or solar generation sites. The treatment effect fluctuates throughout the planning process and our study challenges the belief that renewable technologies have an undesirable effect on property values.