MAG 2025. Authors: Lukas Hofmann (Universiteit van Amsterdam – Faculteit Economie en Bedrijfskunde), Martijn Dröes (Universiteit van Amsterdam – Faculteit Economie en Bedrijfskunde), Marc Francke (Universiteit van Amsterdam – Faculteit Economie en Bedrijfskunde)
We examine how renewable energy facilities (e.g., wind turbines/solar farms) affect residential prices, household sorting and wealth inequality. Sources of renewable energy, such as wind turbines and solar farms, are instrumental in the efforts to transition towards a carbon neutral economy. Conversely, the placement of wind turbines and solar farms negatively affects the prices of nearby properties (Dröes and Koster 2016, 2021; Gibbons 2015). As the production capacity of renewable energy is steadily increasing, the value of many properties will suffer reductions in value. How are these reductions in value distributed across the Netherlands? Are rural/poorer areas more affected?
We investigate what type of households lives near sites where renewable energy production facilities are constructed, and how their house prices are affected. The novelty of this study is that we look at the distribution of prices and also connect that to wealth.
Picture by Benoît Deschasaux For Unsplash+