The impact of promoting renewable energy in Taiwan — How much hail is added to snow in farmland prices?

The purpose of this study is to first examine whether farmland prices are higher with renewable energy solar panel installation than without such installation. Second, we study whether farmland with solar panels has a different impact on the prices of other farmland at different distances. Finally, we ask whether the effect on farmland prices varies when the installed solar panel capacity of nearby farmland varies. The contribution of this study is that the impacts are evaluated in monetary terms regarding “not in my backyard” or “yes in my backyard” for farmland surrounded by solar panel installation. The results indicate that farmland with solar panel installation increases the prices of other farmland at different distances from 3.40% to 37.02% compared to the average farmland price. These results clearly show that “planting” solar panels increases farmland prices to different degrees for all divisions (districts) of the studied city except for one. However, higher farmland prices may not benefit current landowners if potential renters or buyers cannot afford to rent or purchase farmland at a high price. Thus, higher farmland prices due to the installation of renewable energy capacity neither benefit existing surrounding farmers nor are good for the agricultural development of the country. The implementation of renewable energy policies should not only focus on more than meeting the renewable energy target. Prioritizing locations and enforcement of the implementation should also be considered to maintain the long-term agricultural development of Taiwan. •Farmland prices are affected by those with solar panels in different distances.•Farmland prices are affected by nearby farmland with different solar panel capacities.•The monetary effect of the NIMBY or YIMBY of farmland is evaluated.•Farmland prices with solar panels surrounded increase 3.40%–37.02% over average.•Prioritizing location and enforcement are required for renewable energy on farmlands.