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The effect of fossil fuel-based electricity plant location on property values: evidence from Australia

journal contribution
posted on 2024-11-02, 21:23 authored by Peyman KhezrPeyman Khezr, Rabindra Nepal, Renuka Ganegodage
This article investigates the effect of fossil fuel-fired power plant locations on the value of neighbourhood properties in the state of New South Wales, Australia. Fossil fuels account for a significant proportion of electricity generation in Australia. Thus, there are growing community concerns regarding the possible negative environmental effects of these power plants given the high levels of emissions produced by these plants. Such concerns could potentially impact on property values. We use a comprehensive dataset with the exact location of each property to estimate the effects of existing fossil fuel-fired power plants on the value of neighbourhood properties. We use spatial econometric models to estimate these effects with controls over several property characteristics and the type of power plant. Our results suggest that coal-fired power plants have significant negative effects on property values within a specific radius. These effects are likely to be lower but still negative for properties in the vicinity of gas-fired and gas reciprocating power plants.

History

Journal

Australasian Journal of Environmental Management

Volume

28

Issue

4

Start page

391

End page

409

Total pages

19

Publisher

Taylor & Francis Ltd

Place published

Abingdon, UK

Language

English

Copyright

© 2021 Environment Institute of Australia and New Zealand Inc.

Former Identifier

2006118073

Esploro creation date

2023-03-25

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