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Quantifying the externalities of renewable energy plants using wellbeing data: The case of biogas

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  • Christian Krekel
  • Julia Rechlitz
  • Johannes Rode
  • Alexander Zerrahn

Abstract

Although there is strong support for renewable energy plants, they are often met with local resistance. We quantify the externalities of renewable energy plants using well-being data. We focus on the example of biogas, one of the most frequently deployed technologies besides wind and solar. To this end, we combine longitudinal household data with novel panel data on more than 13,000 installations in Germany. Identification rests on a spatial difference-in-differences design exploiting exact geographical coordinates of households, biogas installations and wind direction and intensity. We find limited evidence for negative externalities: impacts are moderate in size and spatially confined to a radius of 2, 000 metres around plants. We discuss implications for research and regional planning, in particular minimum setback distances and potential monetary compensations.

Suggested Citation

  • Christian Krekel & Julia Rechlitz & Johannes Rode & Alexander Zerrahn, 2020. "Quantifying the externalities of renewable energy plants using wellbeing data: The case of biogas," CEP Discussion Papers dp1738, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1738
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    Cited by:

    1. He, Pan & Lovo, Stefania & Veronesi, Marcella, 2022. "Social networks and renewable energy technology adoption: Empirical evidence from biogas adoption in China," Energy Economics, Elsevier, vol. 106(C).
    2. Fabra, Natalia & Gutiérrez, Eduardo & Lacuesta, Aitor & Ramos, Roberto, 2022. "Do Renewables Create Local Jobs?," CEPR Discussion Papers 17206, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    renewables; biogas; externalities; social acceptance; wellbeing; spatial analysis; economic geography;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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