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The Influence of Wind Energy and Biogas on Farmland Prices

Author

Listed:
  • Olena Myrna

    (Department of Agricultural Economics, Humboldt-Universität zu Berlin, Phillippstr. 13, 10115 Berlin, Germany)

  • Martin Odening

    (Department of Agricultural Economics, Humboldt-Universität zu Berlin, Phillippstr. 13, 10115 Berlin, Germany)

  • Matthias Ritter

    (Department of Agricultural Economics, Humboldt-Universität zu Berlin, Phillippstr. 13, 10115 Berlin, Germany)

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.

Suggested Citation

  • Olena Myrna & Martin Odening & Matthias Ritter, 2019. "The Influence of Wind Energy and Biogas on Farmland Prices," Land, MDPI, vol. 8(1), pages 1-14, January.
    • Handle: RePEc:gam:jlands:v:8:y:2019:i:1:p:19-:d:197864
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    References listed on IDEAS

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    5. Marques, Felipe César & Telles, Tiago Santos, 2023. "Spatial effects are determinants of agricultural land prices in Brazil," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 61(3), January.
    6. Cord-Friedrich von Hobe & Marius Michels & Oliver Musshoff, 2021. "German Farmers’ Perspectives on Price Drivers in Agricultural Land Rental Markets—A Combination of a Systematic Literature Review and Survey Results," Land, MDPI, vol. 10(2), pages 1-22, February.
    7. Ritter, Matthias & Huttel, Silke & Odening, Martin & Seifert, Stefan, 2019. "Revisiting The Relationship Between Land Price And Parcel Size," 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia 285062, Australian Agricultural and Resource Economics Society (AARES).
    8. Myrna, Olena, 2023. "Competition in online land lease auctions in Ukraine: Reduced-form estimation," Land Use Policy, Elsevier, vol. 125(C).
    9. Giovanni Ottomano Palmisano & Annalisa De Boni & Rocco Roma & Claudio Acciani, 2021. "Influence of Wind Turbines on Farmlands’ Value: Exploring the Behaviour of a Rural Community through the Decision Tree," Sustainability, MDPI, vol. 13(17), pages 1-25, August.
    10. Qi, Yuan & Hou, Yuchen & Li, Yaoyao & Li, Luyue & Zhang, Jiaqing & Chang, Yuyang & Zhu, Daolin, 2023. "The price gap between state-owned and collective farmlands: Evidence from Xinjiang and Heilongjiang, China," Land Use Policy, Elsevier, vol. 124(C).
    11. Akca, Mehmet Sadik & Sarikaya, Omer Visali & Doker, Mehmet Fatih & Ocak, Fatih & Kirlangicoglu, Cem & Karaaslan, Yakup & Satoglu, Sule Itir & Altinbas, Mahmut, 2023. "A detailed GIS based assessment of bioenergy plant locations using location-allocation algorithm," Applied Energy, Elsevier, vol. 352(C).
    12. Vergara, Felipe & Lakes, Tobia Maike, 2019. "Maizification of the landscape for biogas production? Identifying the likelihood of silage maize for biogas in Brandenburg from 2008-2018," FORLand Working Papers 16 (2019), Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation".
    13. Pates, Nicholas J. & Kim, GwanSeon & Mark, Tyler B. & Ritter, Matthias, 2020. "Windfalls or wind falls? The Local Effects of Turbine Development on US Agricultural Land Values," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304611, Agricultural and Applied Economics Association.
    14. Xueqing Yang & Yang Liu & Mei Wang & Alberto Bezama & Daniela Thrän, 2021. "Identifying the Necessities of Regional-Based Analysis to Study Germany’s Biogas Production Development under Energy Transition," Land, MDPI, vol. 10(2), pages 1-20, February.

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