IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v206y2022ics004727272100222x.html
   My bibliography  Save this article

School district revenue shocks, resource allocations, and student achievement: Evidence from the universe of U.S. wind energy installations

Author

Listed:
  • Brunner, Eric
  • Hoen, Ben
  • Hyman, Joshua

Abstract

We examine the impact of wind energy installation on school district finances and student achievement using data on the timing, location, and capacity of the universe of U.S. installations from 1995 through 2016. Wind energy installation substantially increased district revenues, causing large increases in capital outlays, but only modest increases in current spending, and little to no change in class sizes or teacher salaries. We find zero impact on student test scores. Using administrative data from Texas, the country’s top wind energy producer, we find zero impact of wind energy installation on high school completion and other longer-run student outcomes.

Suggested Citation

  • Brunner, Eric & Hoen, Ben & Hyman, Joshua, 2022. "School district revenue shocks, resource allocations, and student achievement: Evidence from the universe of U.S. wind energy installations," Journal of Public Economics, Elsevier, vol. 206(C).
    • Handle: RePEc:eee:pubeco:v:206:y:2022:i:c:s004727272100222x
    DOI: 10.1016/j.jpubeco.2021.104586
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S004727272100222X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jpubeco.2021.104586?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gordon, Nora, 2004. "Do federal grants boost school spending? Evidence from Title I," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1771-1792, August.
    2. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    3. Rucker C. Johnson & C. Kirabo Jackson, 2019. "Reducing Inequality through Dynamic Complementarity: Evidence from Head Start and Public School Spending," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 310-349, November.
    4. Gigliotti, Philip & Sorensen, Lucy C., 2018. "Educational resources and student achievement: Evidence from the Save Harmless provision in New York State," Economics of Education Review, Elsevier, vol. 66(C), pages 167-182.
    5. Manasi Deshpande & Yue Li, 2019. "Who Is Screened Out? Application Costs and the Targeting of Disability Programs," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 213-248, November.
    6. Stephanie Riegg Cellini & Fernando Ferreira & Jesse Rothstein, 2010. "The Value of School Facility Investments: Evidence from a Dynamic Regression Discontinuity Design," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 215-261.
    7. Dahlberg, Matz & Mörk, Eva & Rattsø, Jørn & Ågren, Hanna, 2008. "Using a discontinuous grant rule to identify the effect of grants on local taxes and spending," Journal of Public Economics, Elsevier, vol. 92(12), pages 2320-2335, December.
    8. Conlin, Michael & Thompson, Paul N., 2017. "Impacts of new school facility construction: An analysis of a state-financed capital subsidy program in Ohio," Economics of Education Review, Elsevier, vol. 59(C), pages 13-28.
    9. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    10. Kahn, Matthew E., 2013. "Local non-market quality of life dynamics in new wind farms communities," Energy Policy, Elsevier, vol. 59(C), pages 800-807.
    11. 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.
    12. Hægeland, Torbjørn & Raaum, Oddbjørn & Salvanes, Kjell G., 2012. "Pennies from heaven? Using exogenous tax variation to identify effects of school resources on pupil achievement," Economics of Education Review, Elsevier, vol. 31(5), pages 601-614.
    13. Alexander W. Bartik & Janet Currie & Michael Greenstone & Christopher R. Knittel, 2019. "The Local Economic and Welfare Consequences of Hydraulic Fracturing," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 105-155, October.
    14. Joseph Marchand & Jeremy G. Weber, 2020. "How Local Economic Conditions Affect School Finances, Teacher Quality, and Student Achievement: Evidence from the Texas Shale Boom," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(1), pages 36-63, January.
    15. Neilson, Christopher A. & Zimmerman, Seth D., 2014. "The effect of school construction on test scores, school enrollment, and home prices," Journal of Public Economics, Elsevier, vol. 120(C), pages 18-31.
    16. Martorell, Paco & Stange, Kevin & McFarlin, Isaac, 2016. "Investing in schools: capital spending, facility conditions, and student achievement," Journal of Public Economics, Elsevier, vol. 140(C), pages 13-29.
    17. Mauritzen, Johannes, 2020. "Will the locals benefit?," Energy Policy, Elsevier, vol. 142(C).
    18. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
    19. Feiveson, Laura, 2015. "General revenue sharing and public sector unions," Journal of Public Economics, Elsevier, vol. 125(C), pages 28-45.
    20. Felipe M. Goncalves, 2015. "The Effects of School Construction on Student and District Outcomes: Evidence from a State-Funded Program in Ohio," Working Papers 593, Princeton University, Department of Economics, Industrial Relations Section..
    21. Jeremy G. Weber & J. Wesley Burnett & Irene M. Xiarchos, 2016. "Broadening Benefits from Natural Resource Extraction: Housing Values and Taxation of Natural Gas Wells as Property," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(3), pages 587-614, June.
    22. Julien Lafortune & Jesse Rothstein & Diane Whitmore Schanzenbach, 2018. "School Finance Reform and the Distribution of Student Achievement," American Economic Journal: Applied Economics, American Economic Association, vol. 10(2), pages 1-26, April.
    23. Byron Lutz, 2010. "Taxation with Representation: Intergovernmental Grants in a Plebiscite Democracy," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 316-332, May.
    24. C. Kirabo Jackson & Rucker C. Johnson & Claudia Persico, 2016. "The Effects of School Spending on Educational and Economic Outcomes: Evidence from School Finance Reforms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(1), pages 157-218.
    25. Christopher A. Candelaria & Kenneth A. Shores, 2019. "Court-Ordered Finance Reforms in the Adequacy Era: Heterogeneous Causal Effects and Sensitivity," Education Finance and Policy, MIT Press, vol. 14(1), pages 31-60, Winter.
    26. Eric Brunner & Joshua Hyman & Andrew Ju, 2020. "School Finance Reforms, Teachers' Unions, and the Allocation of School Resources," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 473-489, July.
    27. Kreisman, Daniel & Steinberg, Matthew P., 2019. "The effect of increased funding on student achievement: Evidence from Texas's small district adjustment," Journal of Public Economics, Elsevier, vol. 176(C), pages 118-141.
    28. Draxl, Caroline & Clifton, Andrew & Hodge, Bri-Mathias & McCaa, Jim, 2015. "The Wind Integration National Dataset (WIND) Toolkit," Applied Energy, Elsevier, vol. 151(C), pages 355-366.
    29. Joshua Hyman, 2017. "Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment," American Economic Journal: Economic Policy, American Economic Association, vol. 9(4), pages 256-280, November.
    30. Paco Martorel & Kevin Stange & Isaac McFarlin Jr., 2016. "Investing in Schools: Capital Spending, Facility Conditions, and Student Achievement (Revised and Edited)," Upjohn Working Papers 16-256, W.E. Upjohn Institute for Employment Research.
    31. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    32. Elizabeth U. Cascio & Nora Gordon & Sarah Reber, 2013. "Local Responses to Federal Grants: Evidence from the Introduction of Title I in the South," American Economic Journal: Economic Policy, American Economic Association, vol. 5(3), pages 126-159, August.
    33. Doruk Cengiz & Arindrajit Dube & Attila Lindner & Ben Zipperer, 2019. "The Effect of Minimum Wages on Low-Wage Jobs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1405-1454.
    34. Abott, Carolyn & Kogan, Vladimir & Lavertu, Stéphane & Peskowitz, Zachary, 2020. "School district operational spending and student outcomes: Evidence from tax elections in seven states," Journal of Public Economics, Elsevier, vol. 183(C).
    35. Itzik Fadlon & Torben Heien Nielsen, 2015. "Family Labor Supply Responses to Severe Health Shocks," NBER Working Papers 21352, National Bureau of Economic Research, Inc.
    36. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    37. C. Kirabo Jackson & Cora Wigger & Heyu Xiong, 2021. "Do School Spending Cuts Matter? Evidence from the Great Recession," American Economic Journal: Economic Policy, American Economic Association, vol. 13(2), pages 304-335, May.
    38. Hong, Kai & Zimmer, Ron, 2016. "Does Investing in School Capital Infrastructure Improve Student Achievement?," Economics of Education Review, Elsevier, vol. 53(C), pages 143-158.
    39. Barbara Biasi, 2019. "School Finance Equalization Increases Intergenerational Mobility: Evidence from a Simulated-Instruments Approach," NBER Working Papers 25600, National Bureau of Economic Research, Inc.
    40. Robert P. Inman, 2008. "The Flypaper Effect," NBER Working Papers 14579, National Bureau of Economic Research, Inc.
    41. Richard G. Newell & Daniel Raimi, 2015. "Oil and Gas Revenue Allocation to Local Governments in Eight States," NBER Working Papers 21615, National Bureau of Economic Research, Inc.
    42. C. Kirabo Jackson & Claire Mackevicius, 2021. "The Distribution of School Spending Impacts," NBER Working Papers 28517, National Bureau of Economic Research, Inc.
    43. repec:wly:soecon:v:82:3:y:2016:p:826-858 is not listed on IDEAS
    44. James R. Hines & Richard H. Thaler, 1995. "The Flypaper Effect," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 217-226, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krekel, Christian & Rode, Johannes & Roth, Alexander, 2023. "Do Wind Turbines Have Adverse Health Impacts?," IZA Discussion Papers 16505, Institute of Labor Economics (IZA).
    2. 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.
    3. Biasi, Barbara & Lafortune, Julien & Schönholzer, David, 2024. "What Works and for Whom? Effectiveness and Efficiency of School Capital Investments across the U.S," IZA Discussion Papers 16713, Institute of Labor Economics (IZA).
    4. Hoen, Ben & Darlow, Ryan & Haac, Ryan & Rand, Joseph & Kaliski, Ken, 2023. "Effects of land-based wind turbine upsizing on community sound levels and power and energy density," Applied Energy, Elsevier, vol. 338(C).
    5. 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).
    6. Barbara Biasi & Julien Lafortune & David Schönholzer, 2024. "What Works and for Whom? Effectiveness and Efficiency of School Capital Investments across the U.S," CESifo Working Paper Series 10884, CESifo.
    7. Yingdan Mei & Pengfei Liu & Lina Meng & Lu Lin, 2024. "Evaluate the Impacts of Wind Farm Facilities on Land Values with Geographically-Linked Microdata in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(2), pages 465-489, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. C. Kirabo Jackson, 2018. "Does School Spending Matter? The New Literature on an Old Question," NBER Working Papers 25368, National Bureau of Economic Research, Inc.
    2. María Orduz, 2022. "Effect of educational spending on academic performance under different institutional arrangements," Documentos CEDE 20224, Universidad de los Andes, Facultad de Economía, CEDE.
    3. Eric Brunner & Joshua Hyman & Andrew Ju, 2020. "School Finance Reforms, Teachers' Unions, and the Allocation of School Resources," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 473-489, July.
    4. Enami, Ali & Alm, James & Aranda, Rodrigo, 2021. "Labor versus capital in the provision of public services: Estimating the marginal products of inputs in the production of student outcomes✰," Economics of Education Review, Elsevier, vol. 83(C).
    5. Stephen Gibbons & Claudia Hupkau & Sandra McNally & Henry G. Overman, 2021. "The Effects of College Capital Projects on Student Outcome," CVER Research Papers 035, Centre for Vocational Education Research.
    6. Biasi, Barbara & Lafortune, Julien & Schönholzer, David, 2024. "What Works and for Whom? Effectiveness and Efficiency of School Capital Investments across the U.S," IZA Discussion Papers 16713, Institute of Labor Economics (IZA).
    7. Danielle V. Handel & Eric A. Hanushek, 2023. "Contexts of Convenience: Generalizing from Published Evaluations of School Finance Policies," CESifo Working Paper Series 10664, CESifo.
    8. Barbara Biasi & Julien Lafortune & David Schönholzer, 2024. "What Works and for Whom? Effectiveness and Efficiency of School Capital Investments across the U.S," CESifo Working Paper Series 10884, CESifo.
    9. Belmonte, Alessandro & Bove, Vincenzo & D’Inverno, Giovanna & Modica, Marco, 2020. "School infrastructure spending and educational outcomes: Evidence from the 2012 earthquake in Northern Italy," Economics of Education Review, Elsevier, vol. 75(C).
    10. Joseph Marchand & Jeremy G. Weber, 2020. "How Local Economic Conditions Affect School Finances, Teacher Quality, and Student Achievement: Evidence from the Texas Shale Boom," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(1), pages 36-63, January.
    11. Josh B. McGee, 2023. "Yes, money matters, but the details can make all the difference," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(4), pages 1125-1132, September.
    12. Ding, Yanqing & Lu, Fengming & Ye, Xiaoyang, 2020. "Intergovernmental transfer under heterogeneous accountabilities: The effects of the 2006 Chinese Education Finance Reform," Economics of Education Review, Elsevier, vol. 77(C).
    13. Abott, Carolyn & Kogan, Vladimir & Lavertu, Stéphane & Peskowitz, Zachary, 2020. "School district operational spending and student outcomes: Evidence from tax elections in seven states," Journal of Public Economics, Elsevier, vol. 183(C).
    14. Erdal Asker & Eric J. Brunner & Stephen L. Ross, 2022. "The Impact of School Spending on Civic Engagement: Evidence from School Finance Reforms," Working papers 2022-16, University of Connecticut, Department of Economics.
    15. Alex Combs & Erin Troland, 2023. "The Role of Property Assessment Oversight in School Finance Inequality," Finance and Economics Discussion Series 2023-024, Board of Governors of the Federal Reserve System (U.S.).
    16. Elisa Facchetti & Lorenzo Neri & Marco Ovidi, 2021. "Should you Meet The Parents? The impact of information on non-test score attributes on school choice," DISCE - Working Papers del Dipartimento di Economia e Finanza def113, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    17. Asma Benhenda, 2020. "The impact of school facility expenditures on pupil attainment," CEPEO Briefing Note Series 10, UCL Centre for Education Policy and Equalising Opportunities, revised Nov 2020.
    18. Flynn, Patrick & Smith, Tucker, 2022. "Rivers, lakes and revenue streams: The heterogeneous effects of Clean Water Act grants on local spending," Journal of Public Economics, Elsevier, vol. 212(C).
    19. Erdal Asker & Eric Brunner & Stephen L. Ross, 2022. "The Impact of School Spending on Civic Engagement: Evidence from School Finance Reforms," Working Papers 2022-041, Human Capital and Economic Opportunity Working Group.
    20. Conlin, Michael & Thompson, Paul N., 2017. "Impacts of new school facility construction: An analysis of a state-financed capital subsidy program in Ohio," Economics of Education Review, Elsevier, vol. 59(C), pages 13-28.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:206:y:2022:i:c:s004727272100222x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505578 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.