I am doing a geostatistical placement optimization study on where would be the optimal placement of a wind turbine in a Danish region. One of the variables taken into account is the cost on the value of the surrounding houses, which of course decreases with increasing distance. I have here a conceptual problem, and I would like to ask if anyone who has done or knows of such type of study could help me:
- Assumed the turbine will be dismantled and removed on the 20th year, how would the cost of the installation of the turbine on the house value be calculated, considering the loss of rent (therefore through computing a 20 years annuity) or calculating it substracting the loss of value at t20 (adjusted to inflation and discounted for the social discount rate) - the loss of value at t0?
- How would you calculate the cost of never removing the wind turbine?