Visual Disamenity in the Queensland Wet Tropics: Estimating the Economic Impacts of Overhead Transmission Lines

Abstract

This paperexamines procedures and findings in estimation of the ‘visual disamenity cost’ associated with installation of high-voltage overhead power lines in the Wet Tropics of Queensland 1 . The study was performed within a short timeframe and small budget, hence the need to design a relatively simple and cost-effective approach, yet one which would yield acceptable information on environmental values. An extensive literature review and advice from a number of resource economists indicated that there was little information from previous studies to support benefit transfer methodology. It was found possible to estimate disamenity costs to ecotourism operation (using a simplified travel cost approach), agricultural operations (based on compensation payments) and residential property values (through a simplified hedonic price approach). A planned contingent valuation of the intrusive effect of the transmission lines through rainforest areas did not proceed, due at least in part to the political sensitivity of this issue.