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Wind power and the labor market in the Brazilian Northeast: a spatial propensity score matching approach

Author

Listed:
  • Antonio Pastorelli Rodrigues, Thiago

    (Empresa de Pesquisa Energética (EPE))

  • Ledi Gonçalves, Solange

    (Universidade Federal de São Paulo (UNIFESP))

  • Squarize Chagas, André

    (Universidade de São Paulo (USP))

Abstract

Debates on the importance of renewable energy sources have arisen in the context of climate change. Wind power is a renewable and clean energy source with minimal environmental impact. Also, the existing literature indicates that the installation of wind farms can be an important channel for local development through job and income generation. In this context, this study aims to analyze the relationship between the presence of wind farms and the labor market outcomes of the municipalities of the Northeast region of Brazil, which contains around 80% of the installed capacity of this technology in the country. The database of this study is built from several public data sources. The methodological approach taken was a combination of propensity score matching and the estimation of the average treatment effect. However, we consider the existence of spatial dependence of the municipalities in the estimation of the propensity score. The results suggest that the presence of wind power plants is positively related to increases in the total wage of the municipalities, mostly in sectors such as construction, transportation, and logistics. In addition, the presence of these plants allows the shifting of resources to the agricultural sector.

Suggested Citation

  • Antonio Pastorelli Rodrigues, Thiago & Ledi Gonçalves, Solange & Squarize Chagas, André, 2019. "Wind power and the labor market in the Brazilian Northeast: a spatial propensity score matching approach," Revista Brasileira de Estudos Regionais e Urbanos, Associação Brasileira de Estudos Regionais e Urbanos (ABER), vol. 13(3), pages 357-378, March.
    • Handle: RePEc:ris:rberur:0017
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    References listed on IDEAS

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    1. Gonçalves, S. & Rodrigues, T.P. & Chagas, A.L.S., 2020. "The impact of wind power on the Brazilian labor market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 128(C).

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    More about this item

    Keywords

    Wind energy; Spatial propensity score matching; Local development;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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