Power Lines and Perceived Home Prices: Isolating Elements of Easement Rights and Noise Pollution

Abstract

This study is the first to use experimental design to look beyond the overall impact of power lines on property values by examining specific easement rights and noise pollution concerns. I find that in isolation, easement rights are associated with a non-significant reduction in property value, whereas noise pollution statistically significantly reduces property values. Interestingly, when easement rights are combined with noise pollution, the combined effect is more than additive. Results from the sample of eminent domain attorneys, who are valuation impact experts, reveals that females penalize a property more severely for being associated with power lines, and attorneys who typically represent property owners (as opposed to the condemner) are more sympathetic to greater diminution values.