IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v93y2018icp35-51.html
   My bibliography  Save this article

Assessing the regional economic impacts of renewable energy sources – A literature review

Author

Listed:
  • Jenniches, Simon

Abstract

The transition of the global energy system is one of the main trends that offers opportunities as well as challenges for the economy. Most literature evaluates the impact of that transition at a national level. That view is broadened towards a regional scale. Due to the lower energy density of many renewable energy sources, renewable energy generation will be more decentralised, leading to potentially significant changes in the regional economy when transitioning to a renewable energy system. In this paper the current literature and methods of assessing regional economic impacts of a transition to renewable energy generation is reviewed. The findings suggest an overall need to clearly define the topics, such as technologies, that are assessed and the evaluated time period. A guideline for a regional impact assessment is provided, focusing on the suitability of applied impact assessment methods (employment ratios, supply chain analyses, input-output models, and computable general equilibrium models).

Suggested Citation

  • Jenniches, Simon, 2018. "Assessing the regional economic impacts of renewable energy sources – A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 35-51.
    • Handle: RePEc:eee:rensus:v:93:y:2018:i:c:p:35-51
    DOI: 10.1016/j.rser.2018.05.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032118303447
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2018.05.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andreas Schröder & Friedrich Kunz & Jan Meiss & Roman Mendelevitch & Christian von Hirschhausen, 2013. "Current and Prospective Costs of Electricity Generation until 2050," Data Documentation 68, DIW Berlin, German Institute for Economic Research.
    2. Allan, Grant J. & Bryden, Ian & McGregor, Peter G. & Stallard, Tim & Kim Swales, J. & Turner, Karen & Wallace, Robin, 2008. "Concurrent and legacy economic and environmental impacts from establishing a marine energy sector in Scotland," Energy Policy, Elsevier, vol. 36(7), pages 2734-2753, July.
    3. Brachert, Matthias & Titze, Mirko, 2012. "Wirtschaftsstruktur und Regionalentwicklung: Zur Bedeutung von Headquartern und verbundenen Wirtschaftszweigen," Wirtschaft im Wandel, Halle Institute for Economic Research (IWH), vol. 18(7), pages 209-216.
    4. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    5. Michelle Gilmartin & Grant Allan, 2015. "Regional Employment Impacts of Marine Energy in the Scottish Economy: A General Equilibrium Approach," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 337-355, February.
    6. Carl F. Christ, 1955. "A Review of Input-Output Analysis," NBER Chapters, in: Input-Output Analysis: An Appraisal, pages 137-182, National Bureau of Economic Research, Inc.
    7. Bjørn Asheim & Ron Boschma & Philip Cooke, 2011. "Constructing Regional Advantage: Platform Policies Based on Related Variety and Differentiated Knowledge Bases," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 893-904.
    8. Mr. Vito Tanzi, 1996. "Globalization, Tax Competition and the Future of Tax Systems," IMF Working Papers 1996/141, International Monetary Fund.
    9. Coon, Randal C. & Leistritz, F. Larry & Hertsgaard, Thor A. & Leholm, Arlen G., 1985. "The North Dakota Input-Output Model: A Tool for Analyzing Economic Linkages," Agricultural Economics Reports 23304, North Dakota State University, Department of Agribusiness and Applied Economics.
    10. Slattery, Michael C. & Lantz, Eric & Johnson, Becky L., 2011. "State and local economic impacts from wind energy projects: Texas case study," Energy Policy, Elsevier, vol. 39(12), pages 7930-7940.
    11. Trink, Thomas & Schmid, Christoph & Schinko, Thomas & Steininger, Karl W. & Loibnegger, Thomas & Kettner, Claudia & Pack, Alexandra & Töglhofer, Christoph, 2010. "Regional economic impacts of biomass based energy service use: A comparison across crops and technologies for East Styria, Austria," Energy Policy, Elsevier, vol. 38(10), pages 5912-5926, October.
    12. Babatunde, Kazeem Alasinrin & Begum, Rawshan Ara & Said, Fathin Faizah, 2017. "Application of computable general equilibrium (CGE) to climate change mitigation policy: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 61-71.
    13. William H. Miernyk, 1965. "The Elements of Input-Output Analysis," Wholbk, Regional Research Institute, West Virginia University, number 04, November-.
    14. Fanning, Tim & Jones, Calvin & Munday, Max, 2014. "The regional employment returns from wave and tidal energy: A Welsh analysis," Energy, Elsevier, vol. 76(C), pages 958-966.
    15. Madlener, Reinhard & Koller, Martin, 2007. "Economic and CO2 mitigation impacts of promoting biomass heating systems: An input-output study for Vorarlberg, Austria," Energy Policy, Elsevier, vol. 35(12), pages 6021-6035, December.
    16. Moreno, Blanca & López, Ana Jesús, 2008. "The effect of renewable energy on employment. The case of Asturias (Spain)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(3), pages 732-751, April.
    17. Lehr, Ulrike & Lutz, Christian & Edler, Dietmar, 2012. "Green jobs? Economic impacts of renewable energy in Germany," Energy Policy, Elsevier, vol. 47(C), pages 358-364.
    18. Llera Sastresa, Eva & Usón, Alfonso Aranda & Bribián, Ignacio Zabalza & Scarpellini, Sabina, 2010. "Local impact of renewables on employment: Assessment methodology and case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(2), pages 679-690, February.
    19. J. Cansino & M. Cardenete & J. Gonzalez & M. P. Pablo-Romero, 2013. "Economic impacts of solar thermal electricity technology deployment on Andalusian productive activities: a CGE approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 25-47, February.
    20. repec:rri:bkchap:04 is not listed on IDEAS
    21. Tobias Kronenberg, 2009. "Construction of Regional Input-Output Tables Using Nonsurvey Methods," International Regional Science Review, , vol. 32(1), pages 40-64, January.
    22. Anthony T. Flegg & Timo Tohmo, 2013. "Regional Input--Output Tables and the FLQ Formula: A Case Study of Finland," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 703-721, May.
    23. Allan, G.J. & Lecca, P. & McGregor, P.G. & Swales, J.K., 2014. "The economic impacts of marine energy developments: A case study from Scotland," Marine Policy, Elsevier, vol. 43(C), pages 122-131.
    24. de Arce, Rafael & Mahía, Ramón & Medina, Eva & Escribano, Gonzalo, 2012. "A simulation of the economic impact of renewable energy development in Morocco," Energy Policy, Elsevier, vol. 46(C), pages 335-345.
    25. Böhringer, Christoph & Rutherford, Thomas Fox & Wiegard, Wolfgang, 2003. "Computable general equilibrium analysis: Opening a black box," ZEW Discussion Papers 03-56, ZEW - Leibniz Centre for European Economic Research.
    26. Binz, Christian & Tang, Tian & Huenteler, Joern, 2017. "Spatial lifecycles of cleantech industries – The global development history of solar photovoltaics," Energy Policy, Elsevier, vol. 101(C), pages 386-402.
    27. David Colander, 2014. "Gross Output: A New Revolutionary Way to Confuse Students about Measuring the Economy," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 40(4), pages 451-455, September.
    28. Carlson, J. Lon & Loomis, David G. & Payne, James, 0. "An Assessment of the Economic Impact of the Wind Turbine Supply Chain in Illinois," The Electricity Journal, Elsevier, vol. 23(7), pages 75-93, August.
    29. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    30. Faulin, Javier & Lera, Fernando & Pintor, Jesus M. & Garcia, Justo, 2006. "The outlook for renewable energy in Navarre: An economic profile," Energy Policy, Elsevier, vol. 34(15), pages 2201-2216, October.
    31. Costello, Donna M, 1993. "A Cross-Country, Cross-Industry Comparison of Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 207-222, April.
    32. Hillebrand, Bernhard & Buttermann, Hans Georg & Behringer, Jean Marc & Bleuel, Michaela, 2006. "The expansion of renewable energies and employment effects in Germany," Energy Policy, Elsevier, vol. 34(18), pages 3484-3494, December.
    33. Clemens Gerbaulet & Jonas Egerer & Pao-Yu Oei & Judith Paeper & Christian von Hirschhausen, 2012. "Die Zukunft der Braunkohle in Deutschland im Rahmen der Energiewende," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 69, number pbk69, Enero-Abr.
    34. Wei, Max & Patadia, Shana & Kammen, Daniel M., 2010. "Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?," Energy Policy, Elsevier, vol. 38(2), pages 919-931, February.
    35. Isoard, Stephane & Soria, Antonio, 2001. "Technical change dynamics: evidence from the emerging renewable energy technologies," Energy Economics, Elsevier, vol. 23(6), pages 619-636, November.
    36. Staffan Jacobsson & Anna Bergek, 2004. "Transforming the energy sector: the evolution of technological systems in renewable energy technology," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(5), pages 815-849, October.
    37. Cansino, J.M. & Cardenete, M.A. & González-Limón, J.M. & Román, R., 2014. "The economic influence of photovoltaic technology on electricity generation: A CGE (computable general equilibrium) approach for the Andalusian case," Energy, Elsevier, vol. 73(C), pages 70-79.
    38. Evans, Annette & Strezov, Vladimir & Evans, Tim J., 2009. "Assessment of sustainability indicators for renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(5), pages 1082-1088, June.
    39. Coon, Randal C. & Hodur, Nancy M. & Bangsund, Dean A., 2012. "Renewable Energy Industries' Contribution to the North Dakota Economy," Agribusiness & Applied Economics Report 140122, North Dakota State University, Department of Agribusiness and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jia Liu & Jizu Li & Xilong Yao, 2019. "The Economic Effects of the Development of the Renewable Energy Industry in China," Energies, MDPI, vol. 12(9), pages 1-18, May.
    2. Dell’Anna, Federico, 2021. "Green jobs and energy efficiency as strategies for economic growth and the reduction of environmental impacts," Energy Policy, Elsevier, vol. 149(C).
    3. Mu, Yaqian & Cai, Wenjia & Evans, Samuel & Wang, Can & Roland-Holst, David, 2018. "Employment impacts of renewable energy policies in China: A decomposition analysis based on a CGE modeling framework," Applied Energy, Elsevier, vol. 210(C), pages 256-267.
    4. Cartelle Barros, Juan José & Lara Coira, Manuel & de la Cruz López, María Pilar & del Caño Gochi, Alfredo, 2017. "Comparative analysis of direct employment generated by renewable and non-renewable power plants," Energy, Elsevier, vol. 139(C), pages 542-554.
    5. Llera, E. & Scarpellini, S. & Aranda, A. & Zabalza, I., 2013. "Forecasting job creation from renewable energy deployment through a value-chain approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 262-271.
    6. Sooriyaarachchi, Thilanka M. & Tsai, I-Tsung & El Khatib, Sameh & Farid, Amro M. & Mezher, Toufic, 2015. "Job creation potentials and skill requirements in, PV, CSP, wind, water-to-energy and energy efficiency value chains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 653-668.
    7. Connolly, Kevin & Allan, Grant J & McIntyre, Stuart G, 2016. "The evolution of green jobs in Scotland: A hybrid approach," Energy Policy, Elsevier, vol. 88(C), pages 355-360.
    8. Luigi Aldieri & Jonas Grafström & Kristoffer Sundström & Concetto Paolo Vinci, 2019. "Wind Power and Job Creation," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    9. Bohlmann, H.R. & Horridge, J.M. & Inglesi-Lotz, R. & Roos, E.L. & Stander, L., 2019. "Regional employment and economic growth effects of South Africa’s transition to low-carbon energy supply mix," Energy Policy, Elsevier, vol. 128(C), pages 830-837.
    10. Costantini, Valeria & Crespi, Francesco & Paglialunga, Elena, 2018. "The employment impact of private and public actions for energy efficiency: Evidence from European industries," Energy Policy, Elsevier, vol. 119(C), pages 250-267.
    11. Sanya Carley & Sara Lawrence, 2014. "Energy-Based Economic Development," Springer Books, Springer, edition 127, number 978-1-4471-6341-1, November.
    12. Jinwon Bae & Sandy Dall'erba, 2016. "The economic impact of a new solar power plant in Arizona: Comparing the input-output results generated by JEDI vs. IMPLAN," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(1-2), pages 61-73, March.
    13. Raitano, Michele & Romano, Eleonora & Zoppoli, Pietro, 2017. "Renewable energy sources in Italy: Sectorial intensity and effects on earnings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 117-127.
    14. Wiser, Ryan & Bolinger, Mark & Heath, Garvin & Keyser, David & Lantz, Eric & Macknick, Jordan & Mai, Trieu & Millstein, Dev, 2016. "Long-term implications of sustained wind power growth in the United States: Potential benefits and secondary impacts," Applied Energy, Elsevier, vol. 179(C), pages 146-158.
    15. Fanning, Tim & Jones, Calvin & Munday, Max, 2014. "The regional employment returns from wave and tidal energy: A Welsh analysis," Energy, Elsevier, vol. 76(C), pages 958-966.
    16. Suwa, Aki, 2020. "Renewable energy and regional value: Identifying value added of public power producer and suppliers in japan," Finance Research Letters, Elsevier, vol. 37(C).
    17. Cameron, Lachlan & van der Zwaan, Bob, 2015. "Employment factors for wind and solar energy technologies: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 160-172.
    18. Ruano-Chamorro, Cristina & Castilla, Juan Carlos & Gelcich, Stefan, 2018. "Human dimensions of marine hydrokinetic energies: Current knowledge and research gaps," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 1979-1989.
    19. Lambert, Rosebud Jasmine & Silva, Patrícia Pereira, 2012. "The challenges of determining the employment effects of renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4667-4674.
    20. Omri, Emna & Chtourou, Nouri & Bazin, Damien, 2015. "Solar thermal energy for sustainable development in Tunisia: The case of the PROSOL project," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1312-1323.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:93:y:2018:i:c:p:35-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.