Estimating the Value of Undergrounding Electricity and Telecommunications Networks |
| |
| Authors: | Ben McNair Peter Abelson |
| |
| Institution: | 1. Crawford School of Economics and Government, The Australian National University;2. Faculty of Economics and Business, The University of Sydney;3. The authors thank Jeff Bennett, Ross Williams and two anonymous referees for helpful comments, and ActewAGL Distribution for allowing us to use its network maps. Funding for this research is from ARC Industry Linkage Grant LP0669754. |
| |
| Abstract: | Underground low‐voltage electricity and telecommunications networks have a number of advantages over overhead networks, including reliability of supply, safety and improved visual amenity. This article investigates the value of these benefits to households by estimating the relationship between house prices and type of network service in three suburbs in Canberra, Australia. Holding other house and neighbourhood characteristics constant, we find that underground networks increase house prices by 2.9 per cent. Although the electricity network in Canberra has some unusual features, this approach can provide valuable information to policy‐makers considering undergrounding programs in residential areas. |
| |
| Keywords: | |
|
|
