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The Local Economic Impact of Wind Power Deployment

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  • Nils May
  • Øivind A. Nilsen

Abstract

This study focuses on the local economic impacts of wind power deployment. Wind power deployment is not necessarily driven by locally accruing economic payoffs only, but potentially also by other factors, such as emphasis on environmentally friendly energy production and its associated benefits. Thus, the local economic impacts of wind power deployment are ambiguous. We empirically test the existence of such impacts using German county-level panel data. After controlling for a set of observable and unobservable factors, the results show that wind power installation does not have a statistically significant impact on GDP per capita. The findings suggest that local economic impacts alone cannot explain the observed increase in wind power capacity.

Suggested Citation

  • Nils May & Øivind A. Nilsen, 2019. "The Local Economic Impact of Wind Power Deployment," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 75(1), pages 56-92.
    • Handle: RePEc:mhr:finarc:urn:doi:10.1628/fa-2018-0021
    DOI: 10.1628/fa-2018-0021
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    Cited by:

    1. Goetzke, Frank & Rave, Tilmann, 2016. "Exploring heterogeneous growth of wind energy across Germany," Utilities Policy, Elsevier, vol. 41(C), pages 193-205.
    2. Meya, Jasper N. & Neetzow, Paul, 2021. "Renewable energy policies in federal government systems," Energy Economics, Elsevier, vol. 101(C).
    3. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    4. Jan Stede & Nils May, 2020. "Way Off: The Effect of Minimum Distance Regulation on the Deployment of Wind Power," Discussion Papers of DIW Berlin 1867, DIW Berlin, German Institute for Economic Research.
    5. Mori-Clement, Yadira & Bednar-Friedl, Birgit, 2019. "Do Clean Development Mechanism Projects Generate Local Employment? Testing for Sectoral Effects across Brazilian Municipalities," Ecological Economics, Elsevier, vol. 157(C), pages 47-60.
    6. Yadira Mori Clement & Birgit Bednar-Friedl, 2017. "Do Clean Development Mechanism projects generate local employment? Testing for sectoral effects across Brazilian municipalities," Graz Economics Papers 2017-05, University of Graz, Department of Economics.

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    More about this item

    Keywords

    economic development; green electricity; regional economic development; panel data; wind power;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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