Research Reveals Economic Connection Between Wind Farms and Property Values

Overview

A research project sampling 428 wind farms and around 500,000 property sales within 5 miles of the farms have found that property values do in fact decline when in close proximity to a wind farm. However, this study does not factor in the social and economic benefits that wind farms bring to a community.

Source: American Clean Power Association

Summary

A recent publication in Energy Policy has shown new light on the impact of wind energy projects on property values. Contrary to claims by companies proposing these projects, the study reveals that properties within a mile of a planned wind farm experience an average 11 percent decrease in value following the project's announcement, compared to those situated three to five miles away. This decline persists through construction but gradually diminishes after the wind farm becomes operational, eventually making property values near and far from the project indistinguishable.

Ben Hoen, a co-author of the paper and a research scientist at the Lawrence Berkeley National Laboratory, highlights that while initial reactions to the potential for a wind project affect property values, the long-term benefits—such as increased revenue for local governments and schools—might outweigh the temporary decline in value for many residents.

However, the study notes a distinction: the negative impact on property values is more apparent near urban areas compared to rural regions. This discrepancy raises questions about differing perceptions of landscape and views between urban fringe and rural residents, suggesting that the value attributed to open spaces and scenic vistas might vary significantly.

The research, analyzing a sample of 428 wind farms in the U.S. and around 500,000 property sales within five miles of these farms, aims to provide communities with valuable information for decision-making regarding wind farm development.

Critically, the paper doesn't consider the financial benefits wind farms bring, which could influence the entire area positively. Sarah Mills from the University of Michigan emphasizes that such findings contribute to community discussions, diverging from prior studies that suggested minimal negative effects on property values due to wind energy projects.

The study's insights, though shedding light on property value fluctuations near wind farms, underscore the need for a nuanced understanding of these impacts amid broader conversations about clean energy adoption and its implications for communities.

Source

https://insideclimatenews.org/news/21122023/inside-clean-energy-wind-farms-property-values/?utm_source=Graham+Sustainability+Institute&utm_campaign=8c3091ea8f-EMAIL_CAMPAIGN_2020_02_21_06_00_COPY_01&utm_medium=email&utm_term=0_e6c4187cd4-8c3091ea8f-100143513