A contingent valuation approach to the valuation of high voltage transmission lines

This paper is to determine the effect High Voltage Transmission Lines (HVOTLs) have on property values, the perception residents have of the effect on value and whether residents are prepared to pay to have an existing HVOTL removed from their neighbourhood. A case study was undertaken to: i. Carry out a quantitative analysis to determine the effect of the HVOTL on property values. ii. Determine the perceptions of property owners to the presence of the HVOTLs, and iii. Determine the property owners' 'willingness to pay' to have the HVOTLs removed, The results show a disparity between the actual sales data as compared to what residents expect and also how much they would be prepared to pay to remove the HVOTLs. The sales analysis results in a negative effect of 20% to those properties that are adjacent to the HVOTLs. This effect drops to a negligible amount at 100 metres. Owners within the neighbourhood believe there is a 10% effect whether they are adjacent or up to 400m from the HVOTLs. The majority of owners opposed any contribution towards removing the HVOTLs. This paper highlights the need for Valuers to have a better understanding, regarding how to appropriately measure the effect of HVOTLs on property values