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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:

  1. 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?
  2. How would you calculate the cost of never removing the wind turbine?

It is a very specific question, I hope someone can help.

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    Your question seems to have nothing to do with geospatial analysis: it appears to be purely financial. Could you please edit it to clarify how this GIS community can help answer it? – whuber Jan 23 '14 at 14:30
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    See the Study docs.wind-watch.org/… has mapping analysis and impact on housing prices on wind farm/turbine placement. Summary it nearly halves the current value of properties - Diminution in Value: -48.27%. – Mapperz Jan 23 '14 at 15:03
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I think the question has a geospatial element, although I have never done such a study. You could:-

a) To work work out effect of turbine placement apply buffers of different distances from the property in question with different buffer distances from the property - simple route would be circular, more difficult but elegant and more realistic would be to take into account site geography (e.g. can wind turbine be seen or heard from property or is it just close?).

b) Different costs (including inflation, etc) are applied to various buffers.

The question on how you then give out either a one of payment or an annual payment is a financial/legal issue ratyher than GIS as whuber says.

Cheers,

Ed

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