The impact of wind turbines on agricultural land values in West Texas

Date

2021-05

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Abstract

Increased wind turbine development has rapidly raised concerns about decreases in surrounding land values due to wind turbine presence. Estimations on the effect of wind turbines on surrounding land values have been mixed. Few studies have empirically examined whether agricultural land values are affected by wind turbine presence, or whether wind turbine profitability affect property values. This study examined the extent to which agricultural land values in Southern High Plains of Texas are impacted by wind turbine presence, and if wind turbine profitability results in notable differences in land value. The study's objectives were threefold; first, the System Advisor Model (SAM) was used to calculate wind turbine profitability in order to determine whether wind turbine profitability positively affected agricultural land values; second, propensity score matching and statistical t-tests were applied to investigate whether agricultural land values change due to the presence of wind turbines; and third, the potential effects of wind energy policies on wind turbine profitability and agricultural land values were discussed and reviewed. The results indicate that agricultural land values are negatively affected by wind turbine presence, while the total profit made by agricultural producers increases as a result of wind turbine presence. These results open a new direction of inquiry when considering wind turbine placement.

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Keywords

Wind Turbines, Profitability, Agricultural Land Values

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