Do production subsidies have a wage incidence in wind power?
AbstractEmployment in electricity generation from renewable resources has expanded rapidly in the US and in Texas during the last decade. Availability of the Production Tax Credit (PTC) has been an important driver of this growth. Using establishment-level employment and payroll data for Texas at the North American Industrial Classification System (NAICS)-6 level, we analyse the differences in average wages between firms generating electricity from fossil fuels and those generating electricity from wind power. We compare relative average wages before and after the rapid expansion of wind power development that followed the ex ante renewal of the PTC in 2006. Our main finding using both the parametric and nonparametric estimation techniques proposed by Racine and Li (2004), is that average payrolls for wind power generators increased relative to fossil fuel-based electricity generators after 2006.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 45 (2013)
Issue (Month): 28 (October)
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Web page: http://www.tandfonline.com/RAEC20
Other versions of this item:
- De Silva, Dakshina G. & McComb, Robert P. & Schiller, Anita R., 2011. "Do production subsidies have a wage incidence in wind power?," MPRA Paper 33861, University Library of Munich, Germany.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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