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The socio-economic cost of wind turbines: A Swedish case study

Author

Listed:
  • Westlund, Hans

    (Department of Urban Planning and Environment)

  • Wilhelmsson, Mats

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

Abstract
The expansion of wind turbines plays a significant role in developing the ability of a country like Sweden to achieve climate-neutral energy production without relying on nuclear power plants. Wind-turbine energy production is expected to grow in coming decades. Conflicts may arise between, on the one hand, the government and the energy authority, and, on the other hand, between municipalities and property owners, especially if this expansion affects other economic activities, such as tourism and reindeer husbandry, or affects property values. This report aims to analyse the negative capitalisation of wind turbines on property values in Sweden over the last ten years. Our conclusions clearly show a relatively significant capitalisation, and that this capitalisation is relatively local, within ten kilometres of the wind power plant. Large wind turbines, or larger clusters of wind turbines in wind farms, impose a greater socio-economic cost in lower property values.

Suggested Citation

  • Westlund, Hans & Wilhelmsson, Mats, 2021. "The socio-economic cost of wind turbines: A Swedish case study," Working Paper Series 21/3, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    • Handle: RePEc:hhs:kthrec:2021_003
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    Cited by:

    1. Lundin, Erik, 2023. "Wind Power Approval, Decentralization, and NIMBYism: Evidence from the Swedish Greens," Working Paper Series 1464, Research Institute of Industrial Economics.
    2. Marvin Schütt, 2024. "Wind Turbines and Property Values: A Meta-Regression Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 1-43, January.
    3. Isaksson, Zeth & Gren, Simon, 2024. "Political expectations and electoral responses to wind farm development in Sweden," Energy Policy, Elsevier, vol. 186(C).
    4. Lin Pan & Ze Zhu & Zhaoyang Shi & Leichong Wang, 2021. "Modeling and Investigation of Blade Trailing Edge of Vertical Axis Offshore Wind Turbine," Sustainability, MDPI, vol. 13(19), pages 1-25, September.
    5. Jan von Detten & Johann V. Seebaß & Jan C. Schlüter & Florian Hackelberg, 2023. "Influence of onshore wind turbines on land values [Einfluss von Onshore-Windenergieanlagen auf den Grundstückswert]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 9(1), pages 63-80, April.
    6. Jerbelle Elomina & Ivana Živojinović, 2024. "Systematic Literature Review of Land Use Conflicts in Northern Sweden—Lessons Learned and Ways Forward," Resources, MDPI, vol. 13(6), pages 1-29, June.

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    More about this item

    Keywords

    sustainability; wind turbines; capitalisation; housing values; hedonic analysis;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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