Epsilon Archive for Student Projects

Abstract

This thesis examines how the construction of wind turbines affects the prices of nearby properties in Sweden and whether the effect of construction varies over time. Using data between 2013 and 2022 the thesis provides analyses of the effects of wind turbine constructions on different types of properties including apartments and single-family homes instead of focusing on the latter like previous studies. It also adds an analysis based on functional regions. The thesis employs a hedonic price model combined with a difference-in-differences approach where properties close to newly constructed turbines form a treatment group while those located further away form a control group. The results show significant negative price effects for some years while in others, there are positive effects from constructing wind turbines. Limitations in the identifying assumptions make the results less reliable.