Property value impacts of onshore wind energy in New England: The importance of spatial heterogeneity and temporal dynamics

Abstract

The purpose of this paper is to update and extend prior studies that examine the impact of onshore wind turbines on property values. Our data come from Massachusetts and Rhode Island, two states that are population dense and rapidly transitioning to renewable energy. We use a difference-in-differences identification strategy with treatment defined by proximity. In contrast to prior research in these states, our results suggest that property values decline when wind turbines are built. These negative impacts are mostly confined to properties within 1 km of a turbine. However, we delve deeper into these aggregate results by examining how treatment effects vary for different regions and how treatment effects vary over time. Importantly, we find that the negative impacts found are almost entirely driven by Cape Cod and Nantucket, Massachusetts. We estimate small and typically insignificant effects for other regions of Massachusetts and Rhode Island. Further, we estimate dynamic models that allow for heterogeneous treatment effects in time since construction. These results suggest that negative impacts abate over time, though in the case of Cape Cod and Nantucket never go to zero. Possible explanations for our complex findings include contagion from opposition to Cape Wind, preference-based sorting, and acclimatization.