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Ex post analysis of economic impacts from wind power development in U.S. counties

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  • Brown, Jason P.
  • Pender, John
  • Wiser, Ryan
  • Lantz, Eric
  • Hoen, Ben

Abstract

Wind power development has surged in recent years in the United States. Policymakers and economic development practitioners to date have typically relied upon project-level case studies or modeled input–output estimates to assess the economic development impacts from wind power, often focusing on potential local, state-wide, or national employment or earnings impacts. Building on this literature, we conduct an ex post econometric analysis of the county-level economic development impacts of wind power installations from 2000 through 2008 in a large, wind-rich region in the country. Taking into account factors influencing wind turbine location, we find an aggregate increase in county-level personal income and employment of approximately $11,000 and 0.5 jobs per megawatt of wind power capacity installed over the sample period of 2000 to 2008. These estimates appear broadly consistent with modeled input–output results, and translate to a median increase in total county personal income and employment of 0.2% and 0.4% for counties with installed wind power over the same period.

Suggested Citation

  • Brown, Jason P. & Pender, John & Wiser, Ryan & Lantz, Eric & Hoen, Ben, 2012. "Ex post analysis of economic impacts from wind power development in U.S. counties," Energy Economics, Elsevier, vol. 34(6), pages 1743-1754.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1743-1754
    DOI: 10.1016/j.eneco.2012.07.010
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    Cited by:

    1. Makena Coffman & Paul Bernstein, 2015. "Linking Hawaii’s Islands with wind energy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 1-21, January.
    2. Haggerty, Julia H. & Haggerty, Mark & Rasker, Ray, 2014. "Uneven Local Benefits of Renewable Energy in the U.S. West: Property Tax Policy Effects," Western Economics Forum, Western Agricultural Economics Association, vol. 13(01).
    3. Makena Coffman & Paul Bernstein, 2013. "Economic Impacts of Inter-Island Energy in Hawaii," Working Papers 2013-16, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    4. Huesca-Pérez, María Elena & Sheinbaum-Pardo, Claudia & Köppel, Johann, 2016. "Social implications of siting wind energy in a disadvantaged region – The case of the Isthmus of Tehuantepec, Mexico," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 952-965.
    5. 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.
    6. repec:eee:ecolec:v:141:y:2017:i:c:p:245-260 is not listed on IDEAS
    7. Christian Brannstrom & Mary Tilton & Andrew Klein & Wendy Jepson, 2015. "Spatial Distribution of Estimated Wind-Power Royalties in West Texas," Land, MDPI, Open Access Journal, vol. 4(4), pages 1-18, December.
    8. Roach, Travis, 2015. "The effect of the production tax credit on wind energy production in deregulated electricity markets," Economics Letters, Elsevier, vol. 127(C), pages 86-88.
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    12. Ben Hoen & Jason Brown & Thomas Jackson & Mark Thayer & Ryan Wiser & Peter Cappers, 2015. "Spatial Hedonic Analysis of the Effects of US Wind Energy Facilities on Surrounding Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 51(1), pages 22-51, July.
    13. Jeremy G. Weber & Jason Brown & John Pender, 2013. "Rural wealth creation and emerging energy industries: lease and royalty payments to farm households and businesses," Research Working Paper RWP 13-07, Federal Reserve Bank of Kansas City.
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    16. repec:eee:enepol:v:110:y:2017:i:c:p:263-270 is not listed on IDEAS
    17. Fell, Harrison & Linn, Joshua & Munnings, Clayton, 2012. "Designing Renewable Electricity Policies to Reduce Emissions," Discussion Papers dp-12-54, Resources For the Future.
    18. Lantz, Eric & Mai, Trieu & Wiser, Ryan H. & Krishnan, Venkat, 2016. "Long-term implications of sustained wind power growth in the United States: Direct electric system impacts and costs," Applied Energy, Elsevier, vol. 179(C), pages 832-846.
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    More about this item

    Keywords

    Wind power; Economic development; Ex post analysis;

    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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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