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Production of Wind Energy and Agricultural Land Values: Evidence from Pennsylvania

Author

Listed:
  • Chris Shultz

    (West Virginia University, College of Business and Economics)

  • Joshua C. Hall

    (West Virginia University, College of Business and Economics)

  • Michael P. Strager

    (West Virginia University, Division of Resource Management)

Abstract

Given the push toward renewable and alternative energy, a new energy mix is emerging. Wind is the fastest growing source of renewable electricity in the United States. The siting of wind turbines has proven controversial with multiple operations facing local resistance. Opponents cite issues such as noise, bird deaths, and aesthetics. Given that farmer portfolios are heavily comprised of land assets, the possibility that surrounding wind energy operations may reduce agricultural land value is of concern. This study examines that possibility using a hedonic regression analysis comparing per acre land value to a series of land characteristics and distance variables for Somerset County, PA. Results indicate no significant relationship between the presence of wind turbines and the value of agricultural land. This confirms the findings of similar studies which have examined the same relationship.

Suggested Citation

  • Chris Shultz & Joshua C. Hall & Michael P. Strager, 2015. "Production of Wind Energy and Agricultural Land Values: Evidence from Pennsylvania," Working Papers 15-11, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:15-11
    as

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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1141&context=econ_working-papers
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    References listed on IDEAS

    as
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    3. Ben H. Blomendahl & Richard K. Perrin & Bruce B. Johnson, 2011. "The Impact of Ethanol Plants on Surrounding Farmland Values: A Case Study," Land Economics, University of Wisconsin Press, vol. 87(2), pages 223-232.
    4. Richard J. Vyn & Ryan M. McCullough, 2014. "The Effects of Wind Turbines on Property Values in Ontario: Does Public Perception Match Empirical Evidence?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(3), pages 365-392, September.
    5. Sarah Pralle & Jessica Boscarino, 2011. "Framing Trade‐offs: The Politics of Nuclear Power and Wind Energy in the Age of Global Climate Change," Review of Policy Research, Policy Studies Organization, vol. 28(4), pages 323-346, July.
    6. Justin Ross & Michael Farmer & Clifford Lipscomb, 2011. "Inconsistency in Welfare Inferences from Distance Variables in Hedonic Regressions," The Journal of Real Estate Finance and Economics, Springer, vol. 43(3), pages 385-400, October.
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    Cited by:

    1. Kathleen Grace & Joshua C. Hall, 2019. "The Value of Residential Community Associations: Evidence from South Carolina," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(1), pages 121-129, February.
    2. 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.

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    More about this item

    Keywords

    wind energy; hedonic regression; agricultural economics;
    All these keywords.

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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