Power lines and homeowners: Risk perception, reaction and property value effects

Abstract

High Voltage Overhead Transmission Lines (HVOTLs) are perceived by many homeowners as potential hazards. Reactions generally vary from indifference to extremely negative when people are faced with the likelihood of HVOTL placement. In order to improve corporate performance, electricity suppliers need to understand why homeowners react differently to HVOTLs and harbour varying risk perceptions about their siting. With this backdrop, the research question of the project becomes: What are the causes of variation in the homeowner’s risk perceptions and reactions when electricity suppliers propose new HVOTL infrastructure? A fundamental issue in the provision of HVOTL is the effect their placement has on property values. Hence a second research question is developed: What are the effects of HVOTL provision on the homeowner’s property value? To answer these questions, the study develops a theoretically-informed and evidence-based model to understand the potential problems of the homeowner when faced with the threat of HVOTL placement. To operationalise the model, qualitative and quantitative studies are undertaken with the aim of understanding the social and cognitive processes that lead to the perceived risks of HVOTL placement. Causes of variation in the homeowner’s risk perceptions and reactions are identified. The findings suggest that locale and place attachment are fundamental to understanding the cause in variations of perceived HVOTL risk and reaction. Electromagnetic fields (EMFs) continue to be of concern to the homeowner, and if anything, anxiety about perceived health-related impacts appears to be more prevalent than before. The thesis emerging from this project is that the perceptions and reactions of the homeowner towards the effects of HVOTL placement are formed differentially according to the meaning of homeownership and the cultural, social, economic and geographical setting. Each homeowner will have a mix of traditional values such as security, safety and belongingness along with emerging ones of late modernity concerning lifestyle, identity and trust in authority. All are influenced by locale in shaping risk perception and reaction. Hence, there are different contexts in which risks of HVOTL siting are experienced and they create a complex matrix of meanings to the homeowner, leading to variations in risk perception and reaction. Further, the thesis proposes that real estate behaviour and changes in property value are an outcome of these variations in risk perceptions and reaction. Perceptual and market behaviour studies confirm that proximity to HVOTLs contributes significantly to property value reduction but the view of a tower structure is more significant. The project provides a number of guidelines for any review of the modus operandi of electricity suppliers. For example, greater emphasis could be placed on the role of place identity in the evaluation process and technical studies undertaken for the final siting of HVOTL corridors. Locale and place attachment are fundamental to understanding the cause in variations of perceived HVOTL risk and hence are central to resolving conflict in community consultation. As a result, additional emphasis on a ‘bottom up’ approach rather than a technocratic model of decision making should also be encouraged as this means is more sensitive to local concerns and perceived risks. Such approaches can alleviate fatalistic attitudes to the public participation process as well as promoting trust in the electricity supplier.