The impact of cell phone towers on house prices: evidence from Brisbane, Australia

  • Darshana Rajapaksa
  • Wasantha Athukorala
  • Shunsuke Managi
  • Prasad Neelawala
  • Boon Lee
  • Viet-Ngu Hoang
  • Clevo Wilson
Research Article

Abstract

The growing public pressure against the spread of cell phone towers in urban areas has created a need to understand their impact on adjacent house prices. A few existing studies are, however, controversial in their methodology and inconclusive in their results. Therefore, our study on the effect of cell phone towers on house prices is designed to avoid these deficiencies. Property transaction data collected from two suburbs within the Brisbane City Council were analysed adopting the spatial hedonic property valuation model. The estimated models were statistically significant and were largely in line with theoretical expectations. The results revealed that proximity to cell phone towers negatively affects house values, decreasing as the distance from the tower increases. A suitable compensation programme for nearby property owners is, therefore, suggested as being an appropriate policy response.

Keywords

Cell phone towers Externalities Hedonic property valuation Spatial analysis 

JEL Classification

Q51 R23 R31 

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Copyright information

© Society for Environmental Economics and Policy Studies and Springer Japan KK 2017

Authors and Affiliations

  • Darshana Rajapaksa
    • 1
  • Wasantha Athukorala
    • 2
  • Shunsuke Managi
    • 3
  • Prasad Neelawala
    • 4
  • Boon Lee
    • 1
  • Viet-Ngu Hoang
    • 1
  • Clevo Wilson
    • 1
  1. 1.QUT Business SchoolQueensland University of TechnologyBrisbaneAustralia
  2. 2.Department of Economics and Statistics, Faculty of ArtsUniversity of PeradeniyaPeradeniyaSri Lanka
  3. 3.Urban Institute, Department of Urban and Environmental Engineering, Faculty of EngineeringKyushu UniversityFukuokaJapan
  4. 4.Business Management and MarketingColomboSri Lanka

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