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1994). For example, Kinnard et al. cite their findings in a study of the property value impacts of a
transmission line in Orange County, New York, in which they interviewed real estate professionals active in
the local market and owners of properties adjacent to the transmission lines, in addition to conducting
statistical analyses of the actual effect of the transmission line on sales prices. They found that the real
estate professionals had a more negative perception of the transmission lines effects on property values
than the owners of the properties. They also found that these perceptions of negative effect were not
supported by the analysis of the actual sales prices, which found no statistically significant reduction in the
sales prices of properties located alongside the transmission line (Kinnard et al., 1988).
Since the mid-1970s, there has been increasing reliance on statistical analyses that use multiple regression
analysis in the hedonic pricing model format to determine the effect of proximity to transmission lines on
property values. Regression analysis is a statistical method by which the changes in a variable of interest,
known as the dependent variable (which in a property value study would be the sales prices of the
properties in the study area), are explained as a function of changes in other factors that are known as
explanatory variables, or regressors. Regression analysis allows the relationship between the dependent
variable and each of the explanatory variables to be included in a model and estimated, providing a
numerical estimator for each relationship. The hedonic pricing model format that is used to structure the
regression model assumes that the amount paid for the purchase of a property reflects the value placed on
specific attributes of the home and property, including contextual factors. Using this approach allows the
relationship between property value and the variables that determine it to be statistically isolated, and the
relative contribution to property value of each of the explanatory variables to be identified.
The use of the multiple regression approach requires a large data set of sales in the area of potential impact,
and in a control area. For each sale, data is required for variables related to the broad spectrum of factors
potentially affecting sales price, including variables that measure the distance from and the visibility of the
1
transmission line. Through application of multiple regression analysis in the hedonic pricing model format,
F
it is possible to identify each variable that has a statistically significant effect on property sales value in the
study area, and to identify the percentage of the total sales value that can be attributed to each of the
variables. At present, the multiple regression/hedonic modeling approach is favored by academic
researchers and professionals as the means to identify the effects of proximity to transmission lines on sales
prices (Kinnard and Dickey, 1995). Hedonic modeling is also in widespread use for evaluating the effects of
other environmental and contextual variables on property value.2 The value of the multiple
regression/hedonic modeling studies is that, because they reflect the prices that buyers actually pay, rather
than speculation about what buyers might do under hypothesized conditions, they are more reliably
reflective of actual transmission line effects than the attitudinal surveys. In addition, the use of large sample
sizes and advanced statistical techniques makes the results of the multiple regression/hedonic modeling
studies considerably more reliable than those of the paired-sales studies.
Key Findings
Although the research thus far is not unanimous in its conclusions, when taken as a whole, it provides a
general basis for understanding possible transmission line/property value relationships. The following
sections summarize results of these studies that are relevant to the proposed Plains and Eastern Clean Line
project.
1
For a detailed review of the variables included in studies of this type, the efforts required to generate this data, and the strategies for analyzing it,
see Ignelzi and Priestley 1989.
2 For example, a journal article by Boyle and Kiel (2001) reviews a large number of studies based on hedonic modeling that evaluate the property
value effects of air quality; water quality; distance from undesirable land uses, including nuclear and fossil fuel electric power plants, hazardous
waste sites, landfills, incinerators, and heavy industrial facilities; multiple environmental pollutants; and neighborhood factors, such as location
relative to roads, public transportation, and airports, school quality, crime levels, and water amenities.
3 In two of the three Virginia regions analyzed, Rhodeside and Harwell found no effect on the value of properties located adjacent to transmission
line rights-of-way. In the Eastern region, they found that location adjacent to a right-of-way was associated with an increase in property value.
properties located next to the transmission line right-of-way, but not right next to a transmission tower,
there is a positive price impact that ranges from 7 to 22 percent (Des Rosiers, 2003). Des Rosiers also found
that for properties that were not immediately adjacent to the right-of-way, but for which the transmission
corridor affords views that have an open character, the presence of the corridor creates property value
increases in the range of 3 to 4 percent. These findings are consistent with the findings of some of the
perception studies. For example, Rhodeside and Harwell found that in a Northern Virginia suburban area,
residents perceived a heavily wooded transmission line right-of-way to be an aesthetic amenity (Rhodeside
and Harwell, 1988). A comprehensive survey of those living in neighborhoods around a transmission line
found that residents evaluated the landscaping of the right-of-way in a positive way (Priestley and Evans,
1996). This same study also found that those who made informal use of the right-of-way for recreational
activities tended to evaluate the transmission line in more positive ways than those who didnt use the right-
of-way.
Des Rosiers provides an apt summary of the findings of the research on transmission line effects on property
values in his observation that, In short, most studies conclude that proximity to a [high voltage transmission
line] per se does not necessarily lead to a drop in the value of surrounding properties and that other physical
as well as neighborhood variables prevail in the price determination process (Des Rosiers, 2002).
Impacts on Vacant Residential Land
In an evaluation of the impacts of transmission lines on the sales prices of vacant residential land in two
subdivisions, Blinder found no effect on the value of lots in one subdivision and a negative effect on the
value of lots on the other (Blinder, 1979). In a study in Maine, Kinnard found that a high voltage transmission
line did not have a statistically significant effect on the sales prices of vacant parcels with potential for
development for residential use (Kinnard, 1988). A study of vacant land with potential for future residential
development along the route of a high voltage transmission line in New York State (Kinnard and Mitchell
1988 and Mitchell and Kinnard 1996) found that once it was in place, the transmission line did not have a
significant effect on the sales value of these properties.
Impacts on Rural and Agricultural Land
The effect of transmission lines on the sales prices of rural and agricultural properties has received less
attention than transmission line effects on single family residences. A recent effort to provide an
understanding of these issues is a 2012 study conducted by James Chalmers, who evaluated the sales of
rural properties that occurred between 2000 and 2010 along a 500-kV transmission line in Montana. The
rural properties studied represent a wide range of terrain, character, and land uses that are relatively similar
to that found along the proposed route for the Plains & Eastern Clean Line, including lands with varying
combinations of agricultural, recreational, and rural residential use. In brief, Chalmers found that on
production agricultural lands (a category that includes both cropland and range lands), there was no
evidence supporting a transmission line effect on sales price. For agricultural lands with recreational
influence (for example, having a high level of environmental amenity) and agricultural lands with high
amenity recreation and natural features (for example, having a river or trout stream, a historic character, or
spectacular views), there was also no evidence of a transmission line effect on sales price. There was also no
evidence of a price effect on sales of large-acreage rural residential tracts (that is, tracts ranging from 60
acres to 591 acres) or of recreational tracts and cabin sites. One of the insights that Chalmers developed
based on this research is that higher levels of recreational use on a rural property do not necessarily make
the property more sensitive to adverse property value effects from a transmission line. He noted that when
there are recreational uses on an agricultural property, there are often other variables at work having to do
with the mix of the propertys attributes that tend to dilute the transmission lines effect (Chalmers, 2012).
A statistical study conducted by Brown on agricultural properties crossed by transmission lines in
Saskatchewan found no adverse impact on property sales prices (Brown, 1976). Other studies, noted below,
have found the effect of transmission lines on the sales prices of agricultural parcels that are expected to
remain in agricultural use for the long term generally in the range of a few percentage points. In a study of
high voltage lines in agricultural areas in Ontario, Woods Gordon found no effects in two out of the six areas
studied, and positive effects in two of the other areas (Woods Gordon 1981). The positive effects were
attributed to the fact that, although the utility corridors were owned by the utility, the farmers were able to
use the land in these corridors for free or for a low fee. In the remaining two areas, negative effects were
found. These negative effects were attributed to the fact that these areas were in regions where residential
development was taking place, creating a potential for conversion of the agricultural parcels to residential
use. In a study of agricultural sales in Arizona that took place later in the 1980s, Thomas A. Ball found a
decrease of two percent in the sales prices of the agricultural properties evaluated (Ball 1989).
The most recent major statistical study of the impacts of transmission lines on the value of agricultural
properties is the one undertaken by Thomas Jackson in Wisconsin. Jackson evaluated the sales of a large
sample of agricultural parcels, some of which were crossed by transmission lines, and some of which were
not. Jacksons general finding was that on the parcels crossed by the transmission lines, there were 1.11% to
2.44% decreases in sales value that could be attributed to the presence of the lines, and that the decreases
were too small to be statistically significant or attributable to the presence of the line alone (Jackson 2010).
The Plains and Eastern Draft Environmental Impact Statement discussion of property value impacts includes
a statement that A review of studies of impacts on agricultural land found that overhead transmission lines
have the potential to reduce the sales price and the effect can vary widely, ranging from no effect to a
decrease of 20 percent or more. (U.S. Department of Energy 2014. Plains and Eastern DEIS, Section
3.13.6.2.5, p. 3.13-53, ln 8-10.) It is important to note that even though the source provided to support this
statement is Kroll and Priestley 1992, this statement is not a direct quotation from the Kroll and Priestley
literature review. Rather it is a summary developed by the author of the DEIS property value section based
on a reading of the Kroll and Priestley report. The DEIS fails to note that the 20% decrease figure cited is a
finding of a single appraiser study that Kroll and Priestley had mentioned in their review, and that this figure
is not consistent with the findings of other research on transmission line effects on the value of agricultural
properties. Rather than reflecting the representative range, the range stated in the DEIS is bracketed by an
outlier that is considerably higher than the findings of the other studies involving agricultural land included
in Kroll and Priestleys 1992 review. In addition, the range stated in the DEIS is at substantial variance with
the findings of the most recent research, which has established that a transmission line crossing an
agricultural parcel has either no effect (Chalmers 2012) or an effect in the range of several percentage
points that is not statistically significant (Jackson 2010).
Distance Effects
Several studies that have found transmission lines to affect property values include findings that the effects
are highest in the areas closest to the transmission line and taper off quickly with distance. Colwell and
Foley, for example, found any effect drops off very quickly with increasing distance, decreasing to zero after
200 feet from the centerline of the transmission line easement (Colwell and Foley, 1979). The multiple
regression analysis/hedonic model study conducted by Hamilton and Schwann in 1996 found that any
property value effect decreases with distance, decreasing to zero at 200 meters (626 feet) from the
transmission towers
Temporal Effects
In the studies that have found an effect to property values due to the development of a new transmission
line or upgrading of an old transmission line, the evidence suggests that such property value effects may
decrease over time. Colwell and Foley found that property value impacts in their study area decreased over
time, leading them to speculate that the decrease may have been related to the growth of vegetation that
increased the extent to which the transmission line was screened from view (Colwell and Foley, 1979). In a
study of a transmission line upgrade, Ignelzi and Priestley found that the effects were greatest in the first
year after the upgrade was completed and tapered off quickly, disappearing nearly completely within 5
years (Ignelzi and Priestley, 1991).
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