Pricing Effects of Onshore Wind Power Projects at Tehachapi Pass Wind Farm and San Gorgonio Pass Wind Farm on Residential Housing Values in California

Pricing Effects of Onshore Wind Power Projects at Tehachapi Pass Wind Farm and San Gorgonio Pass Wind Farm on Residential Housing Values in California

Length: 1618 words (4.6 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

I. Introduction

This paper examines the pricing effects of onshore wind power projects at Tehachapi Pass Wind Farm and San Gorgonio Pass Wind Farm on residential housing values in California, specifically within Kern, Riverside and San Bernardino Counties. As the United States continues to diversify its means of energy consumption, it cannot consider only renewable energy’s impacts on energy supply and costs; it must also remain cognizant of existing community concerns. These concerns can be thought of as externality effects of renewable energy power projects. These consequences – many environmental and socio-economic in nature - have been empirically investigated, and include renewable power projects’ impacts on employment, income, standard of living, landscape and wildlife. However, until very recently , renewable energy’s quantifiable impact upon surrounding residential housing values had not been empirically researched. Despite this current dearth of academic literature, renewable energy development has expanded dramatically in recent years (Hoen, et al. 2009). In his 2009 State of the Union address, President Obama called for a doubling of renewable energy in three years (by 2012), and in 2008 the U.S. Department of Energy produced a report that analyzed the feasibility of meeting 20% of U.S. electricity demand with wind energy by 2030 (US DOE 2008).
Though largely unexplored, the impact of renewable energy on housing values may be one of the most significant gauges of collective attitudes toward renewable energy projects. This is evidenced through K.Y. Chay and Michael Greenstone’s 2008 paper on the pricing impacts of the Superfund program, which states that a rise in housing values reflects a positive change in...


... middle of paper ...


...e .05 level. Thus, we surmise that average distance from a wind farm does not help explain changes in surrounding house values.
This paper is structured as follows: Section II is a review of the conceptual and empirical literature related to renewable energy and housing values, while Section III presents the econometric model and the assumptions of the hedonic pricing model. The data used in this study are taken from the U.S. Census Bureau and the American Wind Energy Association and are covered in more detail in the “Data” section. Section IV describes the data; Section V provides the estimation strategy; Section VI describes the OLS regression results and sensitivity analysis; Section VII is a critique of the paper and describes potential future work and policy implications, and Section VIII provides the conclusions of the study.














Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »