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A comprehensive study of the effect of biogas units on real estate prices in France

Author

Listed:
  • Martin Faulques

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, UNICAEN - Université de Caen Normandie - NU - Normandie Université)

  • Jean Bonnet

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Sébastien Bourdin

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

Abstract

We measured the social acceptability of biogas units by estimating the effect of their location on real estate prices. This study was conducted in France between 2014 and 2021 and included a sample of more than 110,000 real estate transactions near 620 new biogas units. The methodology of difference-in-differences models enabled us to limit the bias of the results for units installed over several periods, while allowing us to conduct an event study. The results showed negative effects of rural biogas units on house prices within one kilometer; we found no effect beyond this distance. Our results suggest that only units located in rural areas have an effect on nearby sales and that this effect is moderate (around −5 %).
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Martin Faulques & Jean Bonnet & Sébastien Bourdin, 2025. "A comprehensive study of the effect of biogas units on real estate prices in France," Post-Print hal-05089177, HAL.
    • Handle: RePEc:hal:journl:hal-05089177
    DOI: 10.1016/j.eneco.2025.108488
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    More about this item

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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