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Monetary Incentives, Landowner Preferences: Estimating Cross-Elasticities in Farmland Conversion to Renewable Energy

Chad Fiechter, Binayak Kunwar, Guy Tchuente

arXiv 15 Nov 2024 · Econometrics

arXiv:2411.10600 · PDF · DOI · OpenAlex · Extracted main text

Abstract

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.

Citation extraction

46
references
57
in-text mentions
46
distinct cited
0
self-citations
10,069
main-text words

appendix boundary found by appendix_titled_section at “Appendix” · 94% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Kirkeboen, L. J., E. Leuven, and M. Mogstad (2016) Field of study, earnings, and self-selection0.81142100%
2Bergman, N. K., R. Iyer, and R. T. Thakor (2020) The effect of cash injections: Evidence from the 1980s farm debt crisis0.64422100%
3Imbens, G. W. and J. D. Angrist (1994) Identification and estimation of local average treatment effects0.64422100%
4Schlenker, W. and M. J. Roberts (2009) Nonlinear temperature effects indicate severe damages to us crop yields under climate change0.64422100%
5Heckman, J. J. and R. Pinto (2018) Unordered monotonicity0.58531100%
6Lubowski, R. N., A. J. Plantinga, and R. N. Stavins (2008) What drives land-use change in the united states? a national analysis of landowner decisions0.58531100%
7Weise, E. and S. Bhat (2024) Across america, clean energy plants are being banned faster than they're being built0.51121100%
8Adjei, E., J. Zhang, W. Sawadgo, and W. Li (2024) Nonlinear effects of conservation reserve program rental rates on land enrollment under varying crop price regimes0.40511100%
9Babcock, B. A (2015) Extensive and intensive agricultural supply response0.40511100%
10Bhuller, M. and H. Sigstad (2024) 2sls with multiple treatments0.40511100%

Showing the top 10 of 46 scored citations.