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The Impact of Energy Production on Farmland Markets: Evidence from New York’s 2008 Hydraulic Fracturing Moratorium

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  • Jennifer Ifft
  • Ao Yu

Abstract

Future conventional and renewable energy production will predominantly occur on farmland, resulting in economic gains as well as potential negative externalities for farmland owners and rural communities. However there is limited research on the economic impact of energy production that takes place on farmland. This study uses the discrete change in expectations caused by the 2008 New York State moratorium on hydraulic fracturing to investigate the net impact of shale gas development on farmland values. We use a difference-in-differences empirical design with a hedonic pricing model. We find that the moratorium led to net economic losses for rural landowners in New York’s Southern tier, as reflected in farmland values declining approximately $1,400/acre.

Suggested Citation

  • Jennifer Ifft & Ao Yu, 2021. "The Impact of Energy Production on Farmland Markets: Evidence from New York’s 2008 Hydraulic Fracturing Moratorium," The Energy Journal, , vol. 42(3), pages 133-152, May.
    • Handle: RePEc:sae:enejou:v:42:y:2021:i:3:p:133-152
    DOI: 10.5547/01956574.42.3.jiff
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    References listed on IDEAS

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    1. Flanders, Archie & White, Fred C. & Escalante, Cesar L., 2004. "Equilibrium of Land Values from Agricultural and General Economic Factors for Cropland and Pasture Capitalization in Georgia," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 22(1), pages 1-12.
    2. Kriesky, J. & Goldstein, B.D. & Zell, K. & Beach, S., 2013. "Differing opinions about natural gas drilling in two adjacent counties with different levels of drilling activity," Energy Policy, Elsevier, vol. 58(C), pages 228-236.
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