LAPSE

LAPSE:2019.0276
Published Article
LAPSE:2019.0276
The Effect of Biogas Production on Farmland Rental Prices: Empirical Evidences from Northern Italy
February 5, 2019
In the last decade, increased environmental awareness has prompted the adoption of incentives for exploiting renewable energy sources. Among these, biogas production has received a certain attention in developed countries. Nonetheless, the subsidies provided have posed the problem of an activity (the production of bioenergy) that engages in direct competition with food and feed production for limited resources, like agricultural land. Even if this competition may be softened by allocating marginal land and/or using dedicated non-agricultural crops, empirical evidence shows that biogas plants have been developed in highly-productive agricultural areas, using increasing amounts of maize silage as feedstock. Thus, studies aimed at measuring the effect of biogas production on agricultural activities are needed in order to avoid this socially undesirable outcome. The paper presents an econometric estimation of the impact of biogas plants on farmland rental values of a Northern Italian rural area. Results show that biogas has a non-linear effect on rental prices, suggesting that incentive schemes specifically accounting for plants’ dimensions and technologies would improve the social sustainability of the bioenergy sector and its coexistence with agricultural activity.
Keywords
agricultural fixed resource, agricultural land price, bioenergy, biogas, environmental trilemma, farmland rental price, farmland value, land use, rent, social sustainability
Suggested Citation
Demartini E, Gaviglio A, Gelati M, Cavicchioli D. The Effect of Biogas Production on Farmland Rental Prices: Empirical Evidences from Northern Italy. (2019). LAPSE:2019.0276
Author Affiliations
Demartini E: Department of Health, Animal Science and Food Safety (VESPA), University of Milan, 20133 Milan, Italy [ORCID]
Gaviglio A: Department of Health, Animal Science and Food Safety (VESPA), University of Milan, 20133 Milan, Italy [ORCID]
Gelati M: Department of Health, Animal Science and Food Safety (VESPA), University of Milan, 20133 Milan, Italy [ORCID]
Cavicchioli D: Department of Economics, Management, and Quantitative Methods (DEMM), University of Milan, 20133 Milan, Italy
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Journal Name
Energies
Volume
9
Issue
11
Article Number
E965
Year
2016
Publication Date
2016-11-18
Published Version
ISSN
1996-1073
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Original Submission
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PII: en9110965, Publication Type: Journal Article
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LAPSE:2019.0276
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doi:10.3390/en9110965
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Feb 5, 2019
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CC BY 4.0
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Feb 5, 2019
 
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Original Submitter
Calvin Tsay
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