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Community Perceptions of Wind Farm Development and the Property Value Impacts of Siting Decisions

Author/s: Sandy Bond

Date Published: 1/01/2010

Published in: Volume 16 - 2010 Issue 1 (pages 52 - 69)

Abstract

With the Government-led drive to reduce greenhouse gas emissions under the Kyoto Protocol through the increased generation of electricity from renewable sources, there has been an associated increase in the deployment of wind technology. In Australia, the total operating wind capacity at the end of 2008 was 1125 MW. Possible “Not in My Back Yard” (NIMBY) reactions to proposed or constructed wind farm developments can have detrimental impacts on nearby property values. To estimate any value effects, it is important to establish the nature and level of market reaction. This paper outlines the results of research carried out in Western Australia in 2008 to investigate community attitudes, and help verify the reported level of opposition, towards the proposed development of a wind farm in the south-western town of Denmark. Contrary to media reports, the results indicate that the majority of the respondents generally think of a wind farm in positive terms. Nearly three quarters (74%) of the respondents were either moderately or strongly in favour of the proposed development due to the perceived benefits of producing “clean”, renewable energy. However, there were grave concerns voiced about the specific site selected for the development and the way in which the proponents/developers had managed the development process. These results highlight the need for research into the market reactions towards wind farm developments to fully understand if, and how much, they may impact nearby property values.

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Keywords

Community Opinion - Nimby Syndrome - Property Values - Wind Farms

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