THE EFFECT OF HIGH VOLTAGE TRANSMISSION LINES ON PROPERTY VALUES: A CONTINGENT VALUATION APPROACH

This research investigates whether Contingent Valuation is meaningful in assessing the effect that High Voltage Transmission Lines (HVOTLs) have on property values. The research uses a Contingent Valuation approach, in conjunction with a hedonic pricing model and an attitudinal study. The results show a disparity between the discount in purchase price and how much owners would be prepared to pay to remove the HVOTLs. The hedonic pricing model results in a negative effect on those properties that are adjacent to the HVOTLs. However, the majority of owners opposed any form of contribution towards removing the HVOTLs. This research highlights that even though buyers believe the HVOTLs have a negative impact on their property values, they are not prepared to pay anything to have them removed and realise the increased value.