Monetary Incentives, Landowner Preferences: Estimating Cross-Elasticities in Farmland Conversion to Renewable Energy
Fuente:
arXiv
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Preprint |
| Published: |
2024
|
| Subjects: | |
| Online Access: | |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1866916483322347520 |
|---|---|
| author | Fiechter, Chad Kunwar, Binayak Tchuente, Guy |
| author_facet | Fiechter, Chad Kunwar, Binayak Tchuente, Guy |
| contents | This study examines the impact of monetary factors on the conversion of farmland to renewable energy generation, specifically solar and wind, in the context of expanding U.S. energy production. We propose a new econometric method that accounts for the diverse circumstances of landowners, including their unordered alternative land use options, non-monetary benefits from farming, and the influence of local regulations. We demonstrate that identifying the cross elasticity of landowners' farming income in relation to the conversion of farmland to renewable energy requires an understanding of their preferences. By utilizing county legislation that we assume to be shaped by land-use preferences, we estimate the cross-elasticities of farming income. Our findings indicate that monetary incentives may only influence landowners' decisions in areas with potential for future residential development, underscoring the importance of considering both preferences and regulatory contexts. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2411_10600 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Monetary Incentives, Landowner Preferences: Estimating Cross-Elasticities in Farmland Conversion to Renewable Energy Fiechter, Chad Kunwar, Binayak Tchuente, Guy Econometrics Methodology This study examines the impact of monetary factors on the conversion of farmland to renewable energy generation, specifically solar and wind, in the context of expanding U.S. energy production. We propose a new econometric method that accounts for the diverse circumstances of landowners, including their unordered alternative land use options, non-monetary benefits from farming, and the influence of local regulations. We demonstrate that identifying the cross elasticity of landowners' farming income in relation to the conversion of farmland to renewable energy requires an understanding of their preferences. By utilizing county legislation that we assume to be shaped by land-use preferences, we estimate the cross-elasticities of farming income. Our findings indicate that monetary incentives may only influence landowners' decisions in areas with potential for future residential development, underscoring the importance of considering both preferences and regulatory contexts. |
| title | Monetary Incentives, Landowner Preferences: Estimating Cross-Elasticities in Farmland Conversion to Renewable Energy |
| topic | Econometrics Methodology |
| url | https://arxiv.org/abs/2411.10600 |