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Solar power promotion plans, energy market liberalization, and farmland prices – Empirical evidence from Taiwan

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  • Lee, Brian
  • Chang, Hung-Hao
  • Wang, Szu-Yung

Abstract

Since solar panels are typically built on the roofs of residential housing or large factories, most of the existing studies focus on the relationship between solar panels and residential housing prices. Research on the effects of solar panel policies and farmland prices is rare. This paper provides the first empirical evaluation of solar power promotion plans on farmland prices before and after the liberalization of the energy market using the unique case of Taiwan. Using administrative data on farmland market transactions, we estimate the difference-in-differences model to identify the causal effect of solar power promotion plans on farmland prices. The solar power promotion plan lowers farmland prices by 15.8% and 36.6% before and after the liberalization of the energy market. Moreover, these effects vary based on farmland quality. The negative effect of the solar power promotion plan on farmland prices is more pronounced for low-quality farmland during the post-energy market liberalization period.

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  • Lee, Brian & Chang, Hung-Hao & Wang, Szu-Yung, 2021. "Solar power promotion plans, energy market liberalization, and farmland prices – Empirical evidence from Taiwan," Energy Economics, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:eneeco:v:99:y:2021:i:c:s0140988321002231
    DOI: 10.1016/j.eneco.2021.105317
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    Cited by:

    1. Qi, Yuan & Lin, Ruihan & Zhang, Jiaqing & Lu, Mengna & Zhang, Yiyue & Zhao, Haile & Chen, Xin & Li, Yaoyao & Zhu, Daolin, 2024. "Impact of farmland quality on farmland rents and its constraints: Evidence from plots in six Chinese provinces," Land Use Policy, Elsevier, vol. 139(C).
    2. Hsu, Hsin-Wei & Yang, Chu-Chuan, 2024. "Assessing land resource planning for agrivoltaics development: Examining synergies approaches between government and farmers," Energy, Elsevier, vol. 298(C).
    3. Humberto Verdejo-Fredes & Fernando García-Muñoz & Francisco Tobar & Cristhian Becker & Mauricio Olivares & Juan Zolezzi & Guillermo Guzmán, 2022. "Retail Electricity Market Liberalization: An Overview of International Experience and Effects on the Chilean Regulated Tariff," Sustainability, MDPI, vol. 14(21), pages 1-21, October.
    4. Lu, Chen-Fu & Cheng, Chia-Yi, 2023. "Does the change of agricultural zoning policy achieve farmland protection in Taiwan?," Land Use Policy, Elsevier, vol. 126(C).

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