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Microclimate effects of wind farms on local crop yields

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  • Kaffine, Daniel T.

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.

Suggested Citation

  • Kaffine, Daniel T., 2019. "Microclimate effects of wind farms on local crop yields," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 159-173.
    • Handle: RePEc:eee:jeeman:v:96:y:2019:i:c:p:159-173
    DOI: 10.1016/j.jeem.2019.06.001
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    More about this item

    Keywords

    Wind power; Microclimates; Crop yields;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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