A room with a blue view: The impact of Blue Economy activities on housing prices across Scottish regions

Abstract

This study examines the indirect impacts of sustainable transitions on coastal communities by analysing the relationship between the visibility of Blue Economy activity and house prices using four Scottish regions as a case example. The research employs hedonic price modelling and spatial econometrics to assess how the visibility of various Blue Economy activities, such as conservation, fossil fuel extraction, ports and aquaculture, has influenced residential property prices from 2012 to 2019. Utilising a unique database of property listings and geographic data, the analysis considers three distance bands to determine the extent to which ocean views containing different marine activities affect housing values. The findings reveal that oil and gas sites negatively impact housing prices across all distance bands and property price quartiles, consistent with existing literature on land-based oil and gas extraction. Conservation activities like Marine Protected Areas (MPAs) only affect prices positively at larger distances when spatial autocorrelation is accounted for, indicating a nuanced relationship between environmental conservation and property values. The study also highlights the complex interactions between aquaculture and housing prices, with positive effects noted at closer distances. Moreover, the analysis shows that port facilities positively influence housing prices, suggesting that accessibility to job opportunities and public services provided by ports is a valued amenity in rural, tourist-oriented regions. This study's methodological innovations contribute to a deeper understanding of the spatial effects of Blue Economy activities on housing prices, providing valuable insights for marine spatial planning and regional economic strategies in coastal areas across the world.