The Influence of Wind Energy and Biogas on Farmland Prices
Olena Myrna (),
Martin Odening () and
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Olena Myrna: Department of Agricultural Economics, Humboldt-Universität zu Berlin, Phillippstr. 13, 10115 Berlin, Germany
Land, 2019, vol. 8, issue 1, 1-14
In the context of the rapid development of renewable energy in Germany in the last decade, and increased concerns regarding its potential impacts on farmland prices, this paper investigates the impact of wind energy and biogas production on agricultural land purchasing prices. To quantify the possible impact of the cumulative capacity of wind turbines and biogas plants on arable land prices in Saxony-Anhalt, we estimate a community-based and a transaction-based model using spatial econometrics and ordinary least squares. Based on data from 2007 to 2016, our analysis shows that a higher cumulative capacity of wind turbines in communities leads to higher farmland transaction prices, though the effect is very small: if the average cumulative capacity of wind turbines per community doubles, we expect that farmland prices per hectare increase by 0.4%. Plots that are directly affected by a wind turbine or part of a regional development plan, however, experience strong price increases.
Keywords: farmland prices; wind energy; biogas; hedonic pricing model; spatial econometrics (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:8:y:2019:i:1:p:19-:d:197864
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