It has become common for low-voltage electricity distribution networks to be installed underground in new housing developments due to a number of advantages over overhead networks including improved appearance, reliability of supply and safety. This paper investigates the value of these benefits to households by estimating the relationship between the type of network service provided and house prices in three selected suburbs in the Australian Capital Territory. The presence of underground networks was found to increase house price by 2.9%. This is an important step towards quantifying the benefits of replacing existing overhead network infrastructure with underground networks in residential areas.

This item was commisioned by Crawford School of Economics and Government, ANU