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Impact of biogas plants on rural residential property values and implications for local acceptance

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  • Zemo, Kahsay Haile
  • Panduro, Toke Emil
  • Termansen, Mette

Abstract

In this paper, we investigate the impact of large- and farm-scale biogas plants on the rural residential property values. We use data from 11,279 rural housing transactions in the period 2007–2015 and trace spatial effects of biogas plants on the local property market. Our results show that large biogas plants have a significant negative impact on rural residential property values while farm-scale biogas plants have a significant positive impact. The findings suggest that preferences for or against biogas plants cannot be explained by either a NIMBY or a PIMBY phenomenon and the paper explores potential reasons for the observed disparity in valuation of farm- and large-scale biogas plants. An economic impact assessment of the choice of facility type, based on a concrete case study, indicates that the impact on residential property values may tip the scale in favor of farm-scale biogas plants. Based on these results, policy implications for planning and expansion of biogas production are discussed.

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  • Zemo, Kahsay Haile & Panduro, Toke Emil & Termansen, Mette, 2019. "Impact of biogas plants on rural residential property values and implications for local acceptance," Energy Policy, Elsevier, vol. 129(C), pages 1121-1131.
    • Handle: RePEc:eee:enepol:v:129:y:2019:i:c:p:1121-1131
    DOI: 10.1016/j.enpol.2019.03.008
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    2. Baruah, Abhinandan & Basu, Mousumi & Amuley, Deeshank, 2021. "Modeling of an autonomous hybrid renewable energy system for electrification of a township: A case study for Sikkim, India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    3. Mark Booker Nielsen & Rikke Lybæk & Tyge Kjær, 2022. "Successfully Navigating the Project Lifecycle for Deployment of Centralized Biogas Projects—The Case of Solrød Biogas," Energies, MDPI, vol. 15(16), pages 1-21, August.
    4. Christian Krekel & Julia Rechlitz & Johannes Rode & Alexander Zerrahn, 2020. "Quantifying the externalities of renewable energy plants using wellbeing data: The case of biogas," CEP Discussion Papers dp1738, Centre for Economic Performance, LSE.
    5. Dobers, Geesche M., 2019. "Acceptance of biogas plants taking into account space and place," Energy Policy, Elsevier, vol. 135(C).
    6. Kim, Ju-Hee & Lim, Seul-Ye & Yoo, Seung-Hoon, 2023. "Does district heating affect residential property prices? Case study of an urban area in South Korea," Utilities Policy, Elsevier, vol. 83(C).
    7. Jens Fyhn Lykke Sørensen & Henning Peter Jørgensen, 2022. "Rural Development Potential in the Bioeconomy in Developed Countries: The Case of Biogas Production in Denmark," Sustainability, MDPI, vol. 14(17), pages 1-18, September.
    8. Bourdin, Sébastien, 2020. "Concertation, localisation, financementsAnalyse des déterminants du déploiement de la méthanisation dans le Grand-Ouest français," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 373(July-Sept).
    9. Massimiliano Mazzanti & Marco Modica & Andrea Rampa, 2021. "The Biogas dilemma: an analysis on the Social Approval of large new plants," SEEDS Working Papers 0221, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2021.
    10. Justyna Tarapata & Marcin Zieliński & Justyna Zulewska, 2022. "Valorization of Dairy By-Products: Efficiency of Energy Production from Biogas Obtained in Anaerobic Digestion of Ultrafiltration Permeates," Energies, MDPI, vol. 15(18), pages 1-15, September.
    11. Stanislav Martinát & Justyna Chodkowska-Miszczuk & Marián Kulla & Josef Navrátil & Petr Klusáček & Petr Dvořák & Ladislav Novotný & Tomáš Krejčí & Loránt Pregi & Jakub Trojan & Bohumil Frantál, 2022. "Best Practice Forever? Dynamics behind the Perception of Farm-Fed Anaerobic Digestion Plants in Rural Peripheries," Energies, MDPI, vol. 15(7), pages 1-17, March.
    12. Carlos Roberto de Sousa Costa & Paula Ferreira, 2023. "A Review on the Internalization of Externalities in Electricity Generation Expansion Planning," Energies, MDPI, vol. 16(4), pages 1-19, February.

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