Dynamic impacts of U.S. energy development on agricultural land use

Timothy Fitzgerald, Yusuke Kuwayama, Sheila Olmstead and Alexandra Thompson

Energy Policy, 2020, vol. 137, issue C

Abstract: The land-use impacts of the rapid expansion of U.S. oil and gas infrastructure since the early 2000s are a focus of local, state, and federal policymakers. Agriculture is the dominant land use in many areas with active energy development. Prior studies find that energy development displaces agriculture and assume that this effect is both permanent and homogeneous. We take a novel approach, analyzing landowners' capacity to both anticipate displaced production prior to the drilling of oil and gas wells, and reclaim some land once wells are in production. Using North Dakota's Bakken Shale as a case study, we merge agricultural land-use data from 2006 to 2014 with locations and drilling dates of oil and gas wells. We then use panel fixed-effects models to estimate the spatially- and intertemporally-heterogeneous effects of additional wells on agricultural land. We find that drilling is associated with reduced surrounding crop cover and increased fallow acreage. Importantly, the duration of these effects differs across agricultural land covers, and effects are in some cases temporary. Our analysis suggests that overlooking dynamic land use impacts may overestimate the cumulative net impact of oil and gas development on agricultural land uses by up to a factor of two.

Keywords: Hydraulic fracturing; Oil wells; Natural gas wells; Agriculture; Land-use change; Bakken Shale; North Dakota (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421519307499
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:137:y:2020:i:c:s0301421519307499

DOI: 10.1016/j.enpol.2019.111163

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().