Author: | Economics
Abstract: We conduct a choice-experiment with individuals that recently rented a vacation property along the North Carolina coastline to assess the impacts of a utility-scale wind farm on their rental decisions. Visualizations were presented to survey respondents that varied both the number of turbines and their proximity to shore. Results indicate that there is not a scenario for which respondents would be willing to pay more to rent a home with turbines in view as compared to the baseline view with no turbines in sight. Further, there is a substantial portion of the survey population that would change their vacation destination if wind farms were placed within visual range of the beach. The rental discounts required to attract the segment of the survey population most amenable to viewing wind farms still indicate that rental value losses of five percent or more are possible if a utility-scale wind farm is placed within eight miles of shore.
Sanja Lutzeyer, McKinsey and Company, Johannesburg, South Africa, and Center for Environmental and Resource Economic Policy, North Carolina State University
Daniel J. Phaneuf, Department of Agricultural and Applied Economics, University of Wisconsin
Laura O. Taylor, Center for Environmental and Resource Economic Policy, North Carolina State University
Download original document: “The amenity costs of offshore wind farms: Evidence from a choice experiment”
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