Wind energy development and perceived real estate values in Ontario, Canada

This paper focuses on public concerns about real estate value loss in communities in the vicinity of wind turbines. The abstract of the paper and excerpt of the discussion are provided below. The full report can be accessed by clicking the links on this page.


This paper focuses on public concerns about real estate value loss in communities in the vicinity of wind turbines. There are some conflicting results in recent academic and non-academic literatures on the issue of property values in general—yet little has been studied about how residents near turbines view the value of their own properties. Using both face-to-face interviews (n = 26) and community survey results (n = 152) from two adjacent communities, this exploratory mixed-method study contextualizes perceived property value loss. Interview results suggest a potential connection between perceived property value loss and actual property value loss, whereby assumed property degradation from turbines seem to lower both asking and selling prices. This idea is reinforced by regression results which suggest that felt property value loss is predicted by health concerns, visual annoyances and community-based variables. Overall, the findings point to the need for greater attention to micro-level local, and interconnected impacts of wind energy development.

Excerpt of Discussion

As expected, the effect of turbines being visually unappealing is statistically significant and this reaffirms that this variable should continue to be used in more traditional property value studies that use hedonic price modeling [12]. Variables relating to procedural justice [82], though they are significant as bivariate correlations with the perceived property value loss dependent variable, are overshadowed by the importance of other predictors in the final regression model. This finding was rather surprising; however we are cautious about dismissing these variables out of h and . It could be that justice variables interact with related variables like perceived health impacts so future research might detect for such interactions. There is considerable evidence that points toward the importance of procedural justice as a predictor of both higher levels of acceptance and success of the development [82,83,84].

A major finding from this research is that turbine-related real estate loss is perceived to already have occurred for some residents in both communities. While only 9% of residents believe their property in Port Burwell has lost value, this number was more than 34% in Clear Creek. Even if turbines do not cause property value loss for the majority, this perception by local residents that they do is relevant in terms of asking and selling prices and overall mitigation of negative impacts. First, that people seem to be selling at a loss is corroborated by a small study conducted on the sale of seven properties in Clear Creek by Lansink [42]. Second, though most valuation studies find no effect, as Thomas and Thomas [85] explain a simple fact of human action, “if men define a situation as real, it is real in its consequences”. What is more, the defining of “real” is not necessarily confined to the minds of the victims of property value loss. Our community-based differences suggest that socialand other processes are at work to contribute to these perceptions. This may particularly be the case in the study of real estate prices in general—an area where local externalities make localized valuation very complex [86].

Despite different community experiences, a total of 32% agree with the statement that turbines do lower values—with 25% and 42% making up the subsamples of Port Burwell and Clear Creek respectively. While it is difficult to tease out whether turbines do or do not cause real estate value loss for individuals our results do share similarities with select existing work based on localized valuation in the Ontario context. The reports in the province and elsewhere that suggest turbines are affecting among other things, rural property values of particular homes [13,42,41] is entirely consonant with the aggregate level findings that suggest on average turbines do not lower property values [12,26,28,29,]. Though some of the better hedonic studies do provide distance measures as fine as ½ mile, negative impacts may simply be happening in certain communities [11] or at different scales. This may be as much socially defined as it is spatially defined in close proximity to turbines. Suggesting that turbines categorically do not cause property value losses is as problematic as blaming the victim. Indeed though Vyn and McCullough [26] find no significant effect at an aggregate level in their study of 7000 home sales in Melanchthon, ON, they admit “this does not preclude any negative effects from occurring on individual properties” and that their large st and ard errors suggests this may be the case. 

Wind Turbine Acoustic Investigation Infr

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NOV 27 2014
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