Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107839
Authors: 
Dröes, Martijn I.
Koster, Hans R.A.
Year of Publication: 
2014
Series/Report no.: 
Tinbergen Institute Discussion Paper 14-124/VIII
Abstract: 
In many countries, wind turbines are constructed as part of a strategy to reduce dependence on fossil fuels. In this paper, we measure the external effect of wind turbines on the transaction prices of nearby houses. A unique house price dataset covering the period 1985-2011 is used, including the exact location of all wind turbines built in the Netherlands. We find that house prices within a two kilometer radius of a turbine, after it has been constructed, decrease by about 1.4 to 2.3 percent on average. We find anticipation effects up to three years in advance of the construction of a wind turbine. We provide further evidence that the external costs of a wind turbine are at least 10 percent of its construction cost.
Subjects: 
renewable energy
wind turbines
externalities
house prices
JEL: 
R31
Q42
Q15
L94
Document Type: 
Working Paper

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