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Does the construction of biogas plants affect local property values?

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  • Marco Modica

    (IRCrES-CNR, Italy)

Abstract

Despite biogas is considered a renewable source of energy, the social acceptability of biogas plants is controversial due to resistance from local communities who are afraid of potential local negative externalities. This paper aim at investigating this claim using evidence from the housing market by means of a diff-in-diff model. Indeed, if households evaluate the presence of biogas plant such as a disamenity, this should be incorporated in the housing values. To this purpose I use data on the housing market of Piedmont provinces where 167 biogas plants have been opened between 2006 and 2015. Results show no significant impact of the opening of a biogas plant on the housing values.

Suggested Citation

  • Marco Modica, 2016. "Does the construction of biogas plants affect local property values?," SEEDS Working Papers 1216, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Nov 2016.
    • Handle: RePEc:srt:wpaper:1216
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    Citations

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    Cited by:

    1. Arkadiusz Piwowar, 2020. "Agricultural Biogas—An Important Element in the Circular and Low-Carbon Development in Poland," Energies, MDPI, vol. 13(7), pages 1-12, April.
    2. Lisiak-Zielińska, Marta & Jałoszyńska, Sylwia & Borowiak, Klaudia & Budka, Anna & Dach, Jacek, 2023. "Perception of biogas plants: A public awareness and preference - A case study for the agricultural landscape," Renewable Energy, Elsevier, vol. 217(C).
    3. Marco Segreto & Lucas Principe & Alexandra Desormeaux & Marco Torre & Laura Tomassetti & Patrizio Tratzi & Valerio Paolini & Francesco Petracchini, 2020. "Trends in Social Acceptance of Renewable Energy Across Europe—A Literature Review," IJERPH, MDPI, vol. 17(24), pages 1-19, December.
    4. Krekel, Christian & Rechlitz, Julia & Rode, Johannes & Zerrahn, Alexander, 2020. "Quantifying the Externalities of Renewable Energy Plants Using Wellbeing Data: The Case of Biogas," IZA Discussion Papers 13959, Institute of Labor Economics (IZA).
    5. Dobers, Geesche M., 2019. "Acceptance of biogas plants taking into account space and place," Energy Policy, Elsevier, vol. 135(C).
    6. 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.
    7. Khoshgoftar Manesh, M.H. & Rezazadeh, A. & Kabiri, S., 2020. "A feasibility study on the potential, economic, and environmental advantages of biogas production from poultry manure in Iran," Renewable Energy, Elsevier, vol. 159(C), pages 87-106.
    8. 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.

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    More about this item

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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