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Efficient spatial distribution of wind power plants given environmental externalities due to turbines and grids

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  • Grimsrud, Kristine
  • Hagem, Cathrine
  • Lind, Arne
  • Lindhjem, Henrik

Abstract

Negative environmental externalities associated with wind power plants are due to the physical characteristics of turbine installations and associated power lines and the geographical siting. This paper presents an environmental taxation scheme for achieving efficient spatial distribution of new wind power production, taking account of both production and environmental costs. Further, the paper illustrates the impact of environmental taxation by means of a detailed numerical energy system model for Norway. The analyses show that a given target for wind power production can be achieved at a significantly lower social cost by implementing a tax scheme, compared to the current situation with no environmental taxes. The analyses also show that the environmental costs associated with both turbines and power lines were crucial to the efficient spatial allocation of wind power plants.

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  • Grimsrud, Kristine & Hagem, Cathrine & Lind, Arne & Lindhjem, Henrik, 2021. "Efficient spatial distribution of wind power plants given environmental externalities due to turbines and grids," Energy Economics, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:eneeco:v:102:y:2021:i:c:s014098832100373x
    DOI: 10.1016/j.eneco.2021.105487
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    Cited by:

    1. Guillot, Victor & Siggini, Gildas & Assoumou, Edi, 2023. "Interactions between land and grid development in the transition to a decarbonized European power system," Energy Policy, Elsevier, vol. 175(C).
    2. Kristine Grimsrud & Cathrine Hagem & Kristina Haaskjold & Henrik Lindhjem & Megan Nowell, 2024. "Spatial Trade-Offs in National Land-Based Wind Power Production in Times of Biodiversity and Climate Crises," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(2), pages 401-436, February.
    3. Lehmann, Paul & Reutter, Felix & Tafarte, Philip, 2021. "Optimal siting of onshore wind turbines: Local disamenities matter," UFZ Discussion Papers 4/2021, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    4. Lehmann, Paul & Reutter, Felix & Tafarte, Philip, 2023. "Optimal siting of onshore wind turbines: Local disamenities matter," Resource and Energy Economics, Elsevier, vol. 74(C).

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    More about this item

    Keywords

    Wind power; Wind power plant; Renewable energy; Environmental externalities; Environmental taxes; Energy system model;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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