Working Paper: CEPR ID: DP15023
Authors: Martijn Dres; Hans Koster
Abstract: This paper examines the effect of wind turbines - with a particular focus on turbine height - and solar farms on house prices. Using detailed data from the Netherlands between 1985-2019, the results show that tall wind turbines have considerably stronger effects on house prices, as compared to small turbines. For example, a tall turbine (\textgreater150m) decreases house prices within 2km by 5.4%, while a small turbine (
Keywords: wind turbines; solar farms; house prices
JEL Codes: R31; Q42; Q15; L95
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Total loss in housing values due to wind turbines (R52) | Estimated at about €5 billion (O52) |
| Total loss in housing values due to solar farms (Q15) | Implies a total loss of €800 million (G33) |
| Median loss per installed megawatt-hour (MWh) for turbines (L94) | €53 (F36) |
| Median loss per installed megawatt-hour (MWh) for 150m turbines (L94) | €11 (D44) |
| Median loss per installed megawatt-hour (MWh) for 50m turbines (L94) | €277 (Y60) |
| Building solar farms instead of wind turbines (Q42) | Will not mitigate external effects of renewable energy production (Q42) |
| Tall wind turbine (greater than 150m) (L94) | Decrease in house prices within 2km (R31) |
| Small wind turbine (50m) (Q42) | Decrease in house prices (maximum effect of 2% which dissipates after 1km) (R31) |
| Presence of solar farms (Q49) | Decrease in house prices within 1km (R31) |