Uplifting winds: The surprisingly positive community-wide impact of wind energy installations on property values

Abstract

A primary concern of stakeholders when considering a new wind project is the potential negative effects wind turbines may have on home values. Yet, what has been surprisingly overlooked in the literature and general discourse around wind energy is that the well-researched positive economic development and fiscal and amenity benefits of wind energy (e.g., increased tax base, tax revenue, better public services and employment gains) might positively affect jurisdiction-wide housing values. With a focus on school districts in the United States, we compare home values in school districts with wind energy installations, before and after a wind energy installation becomes operational, to home values in other school districts located in the same county but without a wind energy installation to provide some of the first causal evidence on the relationship between wind energy projects and district-wide property values. We find that wind projects lead to economically meaningful increases in district-wide housing values of approximately 3 %, when those values are compared to similar homes located in school districts in same-county without wind energy. The effect is strongly correlated with wind project size. The mechanisms, our research suggests, are likely related to relatively large increases in school district per-pupil revenues and expenditures, which are also correlated with wind project size. We suggest other possible mechanisms for the increased values as well.