EconPapers    
Economics at your fingertips  
 

The Influence of Wind Energy and Biogas on Farmland Prices

Olena Myrna (), Martin Odening () and Matthias Ritter
Additional contact information
Olena Myrna: Department of Agricultural Economics, Humboldt-Universität zu Berlin, Phillippstr. 13, 10115 Berlin, Germany

Land, 2019, vol. 8, issue 1, 1-14

Abstract: 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)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2073-445X/8/1/19/pdf (application/pdf)
https://www.mdpi.com/2073-445X/8/1/19/ (text/html)

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:gam:jlands:v:8:y:2019:i:1:p:19-:d:197864

Access Statistics for this article

Land is currently edited by Prof. Dr. Andrew Millington

More articles in Land from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().

 
Page updated 2019-11-29
Handle: RePEc:gam:jlands:v:8:y:2019:i:1:p:19-:d:197864