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Windfall revenues from windfarms: How do county governments respond to increases in the local tax base induced by wind energy installations?

Author

Listed:
  • Eric J. Brunner
  • David J. Schwegman

Abstract

We examine how county governments respond to plausibly random increases in the local tax base generated by wind energy installations using data on the universe of U.S. installations from 1995 through 2017. Wind energy installation led to large increases in county revenue and expenditures, with county governments using this revenue to prioritize spending on highways and hospitals. We also find that wind energy installation led to increases in county property values, suggesting that residents value the enhancements to local public services, property tax reductions, or other changes to local amenities that accompany wind energy installation.

Suggested Citation

  • Eric J. Brunner & David J. Schwegman, 2022. "Windfall revenues from windfarms: How do county governments respond to increases in the local tax base induced by wind energy installations?," Public Budgeting & Finance, Wiley Blackwell, vol. 42(3), pages 93-113, September.
    • Handle: RePEc:bla:pbudge:v:42:y:2022:i:3:p:93-113
    DOI: 10.1111/pbaf.12318
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    References listed on IDEAS

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    Cited by:

    1. Brunner, Eric J. & Hoen, Ben & Rand, Joe & Schwegman, David, 2024. "Commercial wind turbines and residential home values: New evidence from the universe of land-based wind projects in the United States," Energy Policy, Elsevier, vol. 185(C).
    2. Claudia Serra-Sala & Clàudia Serra-Sala, 2024. "Harnessing the Wind: The Impact of Wind Farm Development on Municipal Finances," CESifo Working Paper Series 11283, CESifo.
    3. Brunner, Eric J. & Schwegman, David J., 2022. "Commercial wind energy installations and local economic development: Evidence from U.S. counties," Energy Policy, Elsevier, vol. 165(C).

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