1. Disamenity or premium: Do electricity transmission lines affect farmland values and housing prices differently?
- Author
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Lu, Qinan, Cheng, Nieyan, Zhang, Wendong, and Liu, Pengfei
- Subjects
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ELECTRIC power transmission , *ELECTRIC lines , *HOME prices , *VALUATION of farms , *ENERGY infrastructure , *REAL estate business - Abstract
A substantial increase in electricity demand has triggered a rising investment in energy infrastructure in the US over the last decade. This paper examines the capitalization effects of electricity transmission lines (TMLs) on nearby farmland values and housing prices in the Midwest from 2015 to 2019, based on 16,026 parcel-level farmland sales data from FarmlandFinder and 1,905,280 housing transaction data from the Zillow Transaction and Assessment Dataset database. Our estimation results reaffirm the disamenity effects of TMLs on housing property values and find that the disamenity effects are larger on houses in urban areas than in rural areas. Nearby TMLs generate premiums for surrounding farmland, which contrasts with the disamenity evidence due to aesthetics (either visual or audible) in the literature. We further show that farmland parcels within 0–2 km of TMLs in high-wind areas are approximately 3.10% more expensive than comparable parcels in low-wind areas. Our paper provides novel and contrarian evidence on the effects of TMLs on property values amid rising investment in energy infrastructure. • This paper examines the capitalization effects of electricity transmission lines (TMLs) in US Midwest housing and farmland prices. • The analysis is based on nearly 20,000 farmland sales transactions and 2.5 million Zillow housing sales from 2015 to 2019. • TMLs are disamenities for urban housing prices, but generate premium for farmland prices. • The premium of TMLs in farmland markets are stronger in high-wind-resource areas. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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