nep-res New Economics Papers
on Resource Economics
Issue of 2013‒09‒25
two papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Rural wealth creation and emerging energy industries: lease and royalty payments to farm households and businesses By Jeremy G. Weber; Jason P. Brown; John Pender
  2. U.S. housing prices and the Fukushima nuclear accident: To update, or not to update, that is the question By Alexander Fink; Thomas Stratmann

  1. By: Jeremy G. Weber; Jason P. Brown; John Pender
    Abstract: New technologies for accessing energy resources, changes in global energy markets, and government policies have encouraged growth in the natural gas and wind industries in the 2000s. The growth has offered new opportunities for wealth creation in many rural areas. At a local level, households who own land or mineral rights can benefit from energy development through lease and royalty payments. Using nationally-representative data on U.S. farms from 2011, we assess the consumption, investment, and wealth implications of the $2.3 billion in lease and royalty payments that energy companies paid to farm businesses. We estimate that the savings of current energy payments combined with the effect of payments on land values added $104,000 in wealth for the average recipient farm.
    Keywords: Consumption (Economics) - United States ; Households - Economic aspects ; Farms - Valuation
    Date: 2013
  2. By: Alexander Fink; Thomas Stratmann
    Abstract: Did the nuclear catastrophe at Fukushima in March 2011 cause individuals to reappraise the risks they attach to nuclear power plants? We investigate the change in housing prices in the U.S. after the Fukushima event to test the hypothesis that house prices in the proximity of power plants fell due to an updated nuclear risk perception. Using a difference-in-differences approach we do not find evidence in support of the hypothesis that individuals reappraise the risks associated with nuclear power plants. House prices close to nuclear reactor sites did not fall relative to house prices at other locations in the U.S.
    Keywords: Fukushima, nuclear accident, hedonic prices, housing, updating
    JEL: D80 Q51 R31
    Date: 2013–06

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