In Finland, concerns have begun to arise among the public that wind energy development will affect residential property values. According to a recent study, wind turbines have no effect on home prices in this country.
It is well known that wind energy development has benefits for local municipalities, that includes additional revenue. RES also provide an environmentally friendly image for the region. However, the wind turbines themselves change the landscape, so the construction of wind farms is of concern to residents. In the case of the offshore wind segment, residents of coastal destinations are particularly worried about the loss of tourism value.
In Finland, the results of a Swedish case study by Westlund and Wilhelmsson (2021) are often cited. They found that wind power reduces property values. The analysis includes a subjective assessment model, which is how people perceive the impact of wind turbines on property values. Willingness to pay, however, is different from real estate transaction prices. The Swedish study does not tell us how wind turbines affect property prices. It only shows how people perceive the impact of wind turbines on their property values. The latest study estimates actual real estate transactions.
The study, commissioned by the Finnish Wind Power Association and conducted by Finnish Consulting Group (FCG) and Taloustutkimus (Finnish Institute of Economic Research), selected municipalities in different parts of Finland where wind turbines were installed between 2012 and 2021. The survey was conducted in the municipalities of Haapajärvi, Jokioinen, Kalajoki, Karvia, Närpiö, Perho, Raahe, and Simo.
The research sample consisted of 1,134 residential real estate transactions for which data were extracted from the Surveyor’s Register, the release reads. The dates of residential property transactions were compared with the dates of wind turbine commissioning. The study also took into account the general development of residential property prices in Finland, e.g., between 2010 and 2020, the prices of old single-family houses fell by more than 5 percent on average.
Residential real estate transactions included in the study were differentiated based on whether they occurred before or after the installation of wind turbines.
– The statistical mathematical methods used in this study led to the unequivocal conclusion that the commissioning of wind turbines had no statistical impact on residential property prices, explains Pasi Holm, Research Director at the Finnish Institute of Economic Research.