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The amenity costs of offshore wind farms: Evidence from a choice experiment

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  • Lutzeyer, Sanja
  • Phaneuf, Daniel J.
  • Taylor, Laura O.
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 up to 10% are possible if a utility-scale wind farm is placed within 8 miles of shore.

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  • Lutzeyer, Sanja & Phaneuf, Daniel J. & Taylor, Laura O., 2018. "The amenity costs of offshore wind farms: Evidence from a choice experiment," Energy Economics, Elsevier, vol. 72(C), pages 621-639.
    • Handle: RePEc:eee:eneeco:v:72:y:2018:i:c:p:621-639
    DOI: 10.1016/j.eneco.2018.03.020
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    8. Carr-Harris, Andrew & Lang, Corey, 2019. "Sustainability and tourism: the effect of the United States’ first offshore wind farm on the vacation rental market," Resource and Energy Economics, Elsevier, vol. 57(C), pages 51-67.
    9. Tu, Qiang & Mo, Jianlei & Liu, Zhuoran & Gong, Chunxu & Fan, Ying, 2021. "Using green finance to counteract the adverse effects of COVID-19 pandemic on renewable energy investment-The case of offshore wind power in China," Energy Policy, Elsevier, vol. 158(C).
    10. Anders Dugstad & Kristine Grimsrud & Gorm Kipperberg & Henrik Lindhjem & Ståle Navrud, 2020. "Acceptance of national wind power development and exposure. A case-control choice experiment approach," Discussion Papers 933, Statistics Norway, Research Department.
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    17. Boyle, Kevin J. & Boatwright, Jessica & Brahma, Sreeya & Xu, Weibin, 2019. "NIMBY, not, in siting community wind farms," Resource and Energy Economics, Elsevier, vol. 57(C), pages 85-100.
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    19. Shinsuke KYOI & Kengo IWATA & Yoshiaki USHIFUSA, 2024. "Local Citizens' Preferences for Offshore Wind Turbine Development: An Empirical Evidence from Four Prospective Prefectures in Japan," KIER Working Papers 1101, Kyoto University, Institute of Economic Research.
    20. Cohen, Jed J. & Azarova, Valeriya & Kollmann, Andrea & Reichl, Johannes, 2021. "Preferences for community renewable energy investments in Europe," Energy Economics, Elsevier, vol. 100(C).
    21. Oehlmann, Malte & Glenk, Klaus & Lloyd-Smith, Patrick & Meyerhoff, Jürgen, 2021. "Quantifying landscape externalities of renewable energy development: Implications of attribute cut-offs in choice experiments," Resource and Energy Economics, Elsevier, vol. 65(C).
    22. Elsa Varela & Zein Kallas, 2022. "Societal preferences for the conservation of traditional pig breeds and their agroecosystems: Addressing preference heterogeneity and protest responses through deterministic allocation and scale‐exten," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 761-788, September.

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    More about this item

    Keywords

    Offshore wind farms; Choice experiment; Coastal rental markets; Latent class models;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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