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Microclimate effects of wind farms on local crop yields

Daniel Kaffine

Journal of Environmental Economics and Management, 2019, vol. 96, issue C, 159-173

Abstract: This paper considers a novel spillover effect of wind farms - microclimate impacts on neighboring crop yields. Using US county-level crop and wind capacity data, I examine the effects of wind energy development on crop yields, controlling for time-invariant county characteristics and state-level annual shocks. I find robust evidence that counties with increased wind power development have also experienced increased corn and other crop yields, such that an additional 100 MW of wind capacity increases county yields by roughly 1%. At recent prices, this implies a more than $5 dollar per megawatt-hour local benefit, corresponding to several hundred million dollars in annual benefits.

Keywords: Wind power; Microclimates; Crop yields (search for similar items in EconPapers)
JEL-codes: Q12 Q42 Q48 Q54 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.jeem.2019.06.001

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Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

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