IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v148y2021ics1364032121005293.html
   My bibliography  Save this article

Socio-economic impact of a 200 MW floating wind farm in Gran Canaria

Author

Listed:
  • Schallenberg-Rodriguez, J.
  • Inchausti-Sintes, F.

Abstract

This research analyses the economic impact of a 200 MW offshore floating wind farm in an isolated tourist-led region as the Canary Islands in terms of regional and national gross value added (GVA) and employment. After analysing the value chain of the offshore wind energy industry, the impact of the regional and national economy has been estimated using an input/output model. The main aim is to evaluate this impact in comparison to more industrialized region and to bottom-fixed offshore wind farms. The value chain analysis shows that the floating offshore wind capabilities in Spain are very high. Two different scenarios have been developed to take into account transfers of the value-chain between the regional and the national level. It is concluded that similar level of investment in the Canary Islands and in Mainland-Spain will lead to different impacts in the economy due to their different economic structures. The highly tourism-led Canarian economy, characterised by a marginal industrial sector and overdeveloped services one, will lead to an overall lower GVA and, at the same time, to a higher employment demand. Several indicators have been deployed using the results of this research that show the impact in tourist-led economies and also of floating versus bottom-fixed offshore wind farms. The GVA generated through the whole project is high, reaching 680 million euros at national level, which includes a regional contribution of 365 to 245 million euros, showing the high impact of the project in the national and local economy.

Suggested Citation

  • Schallenberg-Rodriguez, J. & Inchausti-Sintes, F., 2021. "Socio-economic impact of a 200 MW floating wind farm in Gran Canaria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    • Handle: RePEc:eee:rensus:v:148:y:2021:i:c:s1364032121005293
    DOI: 10.1016/j.rser.2021.111242
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032121005293
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2021.111242?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. Markard, Jochen & Petersen, Regula, 2009. "The offshore trend: Structural changes in the wind power sector," Energy Policy, Elsevier, vol. 37(9), pages 3545-3556, September.
    2. Westerberg, Vanja & Jacobsen, Jette Bredahl & Lifran, Robert, 2013. "The case for offshore wind farms, artificial reefs and sustainable tourism in the French mediterranean," Tourism Management, Elsevier, vol. 34(C), pages 172-183.
    3. Calds, N. & Varela, M. & Santamara, M. & Sez, R., 2009. "Economic impact of solar thermal electricity deployment in Spain," Energy Policy, Elsevier, vol. 37(5), pages 1628-1636, May.
    4. Cartelle Barros, Juan José & Lara Coira, Manuel & de la Cruz López, María Pilar & del Caño Gochi, Alfredo, 2017. "Comparative analysis of direct employment generated by renewable and non-renewable power plants," Energy, Elsevier, vol. 139(C), pages 542-554.
    5. Wieczorek, Anna J. & Negro, Simona O. & Harmsen, Robert & Heimeriks, Gaston J. & Luo, Lin & Hekkert, Marko P., 2013. "A review of the European offshore wind innovation system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 294-306.
    6. Snyder, Brian & Kaiser, Mark J., 2009. "Ecological and economic cost-benefit analysis of offshore wind energy," Renewable Energy, Elsevier, vol. 34(6), pages 1567-1578.
    7. Markus Steen & Gard Hopsdal Hansen, 2014. "Same Sea, Different Ponds: Cross-Sectorial Knowledge Spillovers in the North Sea," European Planning Studies, Taylor & Francis Journals, vol. 22(10), pages 2030-2049, October.
    8. Connolly, Kevin, 2020. "The regional economic impacts of offshore wind energy developments in Scotland," Renewable Energy, Elsevier, vol. 160(C), pages 148-159.
    9. Paresh Kumar Narayan, 2004. "Economic Impact of Tourism on Fiji's Economy: Empirical Evidence from the Computable General Equilibrium Model," Tourism Economics, , vol. 10(4), pages 419-433, December.
    10. Allan, Grant & Lecca, Patrizio & McGregor, Peter & Swales, Kim, 2014. "The economic and environmental impact of a carbon tax for Scotland: A computable general equilibrium analysis," Ecological Economics, Elsevier, vol. 100(C), pages 40-50.
    11. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    12. Schallenberg-Rodríguez, Julieta & García Montesdeoca, Nuria, 2018. "Spatial planning to estimate the offshore wind energy potential in coastal regions and islands. Practical case: The Canary Islands," Energy, Elsevier, vol. 143(C), pages 91-103.
    13. de Arce, Rafael & Mahía, Ramón & Medina, Eva & Escribano, Gonzalo, 2012. "A simulation of the economic impact of renewable energy development in Morocco," Energy Policy, Elsevier, vol. 46(C), pages 335-345.
    14. Faturay, Futu & Vunnava, Venkata Sai Gargeya & Lenzen, Manfred & Singh, Shweta, 2020. "Using a new USA multi-region input output (MRIO) model for assessing economic and energy impacts of wind energy expansion in USA," Applied Energy, Elsevier, vol. 261(C).
    15. Jean-Jacques Nowak & Mondher Sahli, 2007. "Coastal Tourism and ‘Dutch Disease’ in a Small Island Economy," Tourism Economics, , vol. 13(1), pages 49-65, March.
    16. Stephen Pratt, 2015. "The Borat Effect: Film-Induced Tourism Gone Wrong," Tourism Economics, , vol. 21(5), pages 977-993, October.
    17. Alexander, Karen A. & Wilding, Thomas A. & Jacomina Heymans, Johanna, 2013. "Attitudes of Scottish fishers towards marine renewable energy," Marine Policy, Elsevier, vol. 37(C), pages 239-244.
    18. Topham, Eva & McMillan, David, 2017. "Sustainable decommissioning of an offshore wind farm," Renewable Energy, Elsevier, vol. 102(PB), pages 470-480.
    19. Varela-Vázquez, Pedro & Sánchez-Carreira, María del Carmen, 2015. "Socioeconomic impact of wind energy on peripheral regions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 982-990.
    Full references (including those not matched with items on IDEAS)

    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. Yuan, Rong & Rodrigues, João F.D. & Tukker, Arnold & Behrens, Paul, 2018. "The impact of the expansion in non-fossil electricity infrastructure on China’s carbon emissions," Applied Energy, Elsevier, vol. 228(C), pages 1994-2008.
    2. Markus Steen, 2016. "Reconsidering path creation in economic geography: aspects of agency, temporality and methods," European Planning Studies, Taylor & Francis Journals, vol. 24(9), pages 1605-1622, September.
    3. Qu, Yang & Hooper, Tara & Swales, J. Kim & Papathanasopoulou, Eleni & Austen, Melanie C. & Yan, Xiaoyu, 2021. "Energy-food nexus in the marine environment: A macroeconomic analysis on offshore wind energy and seafood production in Scotland," Energy Policy, Elsevier, vol. 149(C).
    4. Qu, Yang & Hooper, Tara & Austen, Melanie C. & Papathanasopoulou, Eleni & Huang, Junling & Yan, Xiaoyu, 2023. "Development of a computable general equilibrium model based on integrated macroeconomic framework for ocean multi-use between offshore wind farms and fishing activities in Scotland," Applied Energy, Elsevier, vol. 332(C).
    5. Ho, Lip-Wah & Lie, Tek-Tjing & Leong, Paul TM & Clear, Tony, 2018. "Developing offshore wind farm siting criteria by using an international Delphi method," Energy Policy, Elsevier, vol. 113(C), pages 53-67.
    6. Markard, Jochen & Hoffmann, Volker H., 2016. "Analysis of complementarities: Framework and examples from the energy transition," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 63-75.
    7. Satir, Mert & Murphy, Fionnuala & McDonnell, Kevin, 2018. "Feasibility study of an offshore wind farm in the Aegean Sea, Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2552-2562.
    8. Ramos, Carmen & García, Ana Salomé & Moreno, Blanca & Díaz, Guzmán, 2019. "Small-scale renewable power technologies are an alternative to reach a sustainable economic growth: Evidence from Spain," Energy, Elsevier, vol. 167(C), pages 13-25.
    9. Mostafaeipour, Ali, 2010. "Feasibility study of offshore wind turbine installation in Iran compared with the world," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 1722-1743, September.
    10. Virtanen, E.A. & Lappalainen, J. & Nurmi, M. & Viitasalo, M. & Tikanmäki, M. & Heinonen, J. & Atlaskin, E. & Kallasvuo, M. & Tikkanen, H. & Moilanen, A., 2022. "Balancing profitability of energy production, societal impacts and biodiversity in offshore wind farm design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    11. Toonen, Hilde M. & Lindeboom, Han J., 2015. "Dark green electricity comes from the sea: Capitalizing on ecological merits of offshore wind power?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1023-1033.
    12. Weaver, Tyson, 2012. "Financial appraisal of operational offshore wind energy projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5110-5120.
    13. Carr-Harris, Andrew & Lang, Corey, 2019. "Sustainability and tourism: the effect of the United States’ first offshore wind farm on the vacation rental market," Resource and Energy Economics, Elsevier, vol. 57(C), pages 51-67.
    14. Abramic, A. & García Mendoza, A. & Haroun, R., 2021. "Introducing offshore wind energy in the sea space: Canary Islands case study developed under Maritime Spatial Planning principles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    15. Dalton, Gordon & Allan, Grant & Beaumont, Nicola & Georgakaki, Aliki & Hacking, Nick & Hooper, Tara & Kerr, Sandy & O’Hagan, Anne Marie & Reilly, Kieran & Ricci, Pierpaolo & Sheng, Wanan & Stallard, T, 2015. "Economic and socio-economic assessment methods for ocean renewable energy: Public and private perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 850-878.
    16. Shunichi Hienuki & Yuki Kudoh & Hiroki Hondo, 2015. "Establishing a Framework for Evaluating Environmental and Socio-Economic Impacts by Power Generation Technology Using an Input–output Table—A Case Study of Japanese Future Electricity Grid Mix," Sustainability, MDPI, vol. 7(12), pages 1-18, November.
    17. Tuukka Mäkitie & Håkon E. Normann & Taran M. Thune & Jakoba Sraml Gonzalez, 2018. "The green flings: market fluctuations and incumbent energy industries’ engagement in renewable energy," Working Papers on Innovation Studies 20180524, Centre for Technology, Innovation and Culture, University of Oslo.
    18. Georgiou, Isabella & Areal, Francisco J., 2015. "Economic valuation of an offshore wind farm in Greece: The role of individual׳s base-state influences and beliefs in the value formation process," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 717-724.
    19. Matsumoto, Ken'ichi & Matsumura, Yuko, 2022. "Challenges and economic effects of introducing renewable energy in a remote island: A case study of Tsushima Island, Japan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    20. Bonar, Paul A.J. & Bryden, Ian G. & Borthwick, Alistair G.L., 2015. "Social and ecological impacts of marine energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 486-495.

    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:rensus:v:148:y:2021:i:c:s1364032121005293. 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/wps/find/journaldescription.cws_home/600126/description#description .

    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.