The effect of electric power transmission lines on property value is a complicated and thus also controversial issue. Conventional compensation procedures appear to be the main source of public debate and the inspiration for this study in Finland. This debate overrides the sufficient technological jumps needed to improve both agricultural productivity and efficiency on power transmitting.
This study reviews current debate, literature and methods both in Finland and overseas. Relevant theoretical issues, the nature of property value and the meaning of compensation are discussed. Empirical study to examine how much the appearance or proximity of transmission lines influences the market value of agricultural lands will be set.
The results from this study have a high applied value for both farmers and power transmission line owners on discussions over appropriate landowner compensations related to power line constructions. From the academic point of view results explain part of the variation in agricultural land prices which has not been captured earlier.