Timmer, Jeroen (2023) The influence of solar farms on residential property values. Master thesis.
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Abstract
The number of solar farms in the Netherlands grows exponentially, however, they possibly also cause negative externalities for local residents. This paper examines the effect of solar farms on residential property values. I disentangle the effect by investigating the anticipation effect between permit and opening and the effect after opening by using a difference-in-difference hedonic model. I use residential property transaction data from 2015 to 2022 from the Netherlands. My results indicate that residential properties located within 1 kilometer from a solar farm, decrease in value with 2.85% after the opening of the solar farm. I find a smaller decrease in the anticipation period between the license and opening date, however this effect is not significant. Furthermore, I find that the negative effect is stronger in urban regions and with properties constructed after 2000. In conclusion, my findings indicate that building solar farms in the proximity of residential properties results in a significant loss in residential property values.
| Item Type: | Thesis (Master) |
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| Degree programme: | Real Estate Studies |
| Supervisor: | Liu, X. |
| Date Deposited: | 15 Jun 2023 14:02 |
| Last Modified: | 15 Jun 2023 14:02 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4190 |
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