IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v45y2011i9p1171-1186.html
   My bibliography  Save this article

The Importance of Revenue Sharing for the Local Economic Impacts of a Renewable Energy Project: A Social Accounting Matrix Approach

Author

Listed:
  • Grant Allan
  • Peter Mcgregor
  • Kim Swales

Abstract

Allan G., McGregor P. and Swales K. The importance of revenue sharing for the local economic impacts of a renewable energy project: a social accounting matrix approach, Regional Studies . Ambitious renewable energy targets are requiring investments in new renewable capacity in areas where acceptance could be affected by the potential economic benefits to the locality. At the same time, new renewable energy projects, primarily for onshore wind capacity, might offer a route by which peripheral economic development policies can be supported. The economic impacts of these projects are difficult to quantify using input--output techniques, but can be more appropriately handled within a social accounting matrix (SAM) framework. A social accounting matrix for the Shetland Islands, off the north coast of mainland Scotland, is used to evaluate the potential local economic and employment impacts of a large proposed onshore wind energy project. Sensitivity analysis reveals the relative importance of the level of ‘community benefit’ payments, ‘local sourcing’ of intermediate inputs and the level of community ownership of the project to the size of these impacts. In the Shetland case, by a substantial margin, local ownership confers the greatest economic impacts for the local community. Allan G., McGregor P. y Swales K. La importancia de compartir ingresos en un proyecto de energ�a renovable para los efectos económicos locales: el m�todo de matriz de contabilidad social, Regional Studies . Para lograr objetivos ambiciosos en el campo de la energ�a renovable es necesario invertir en nuevas capacidades de energ�a renovable en áreas donde la aceptación podr�a verse afectada por los posibles beneficios económicos en la localidad. As� mismo, los nuevos proyectos de energ�a renovable, sobre todo para la capacidad eólica terrestre, podr�an ofrecer una v�a para apoyar las pol�ticas de desarrollo económico perif�rico. Los efectos económicos de estos proyectos son dif�ciles de cuantificar si se usan t�cnicas de aportes y resultados (input--output). No obstante, una matriz de contabilidad social (MCS) podr�a ser un m�todo más apropiado. Con ayuda de una matriz de contabilidad social para las islas Shetland, en la costa norte de Escocia continental, evaluamos las posibles repercusiones locales en la econom�a y el empleo de un importante proyecto propuesto para la energ�a eólica terrestre. El análisis de sensibilidad muestra la importancia relativa del nivel de pagos que benefician a la comunidad, el suministro local de aportaciones intermedias y el nivel de propiedad comunitaria del proyecto para el tamaño de estos efectos. En el caso de las islas Shetland, la propiedad local aporta con un margen considerable los efectos económicos más importantes para la comunidad local. Energie renouvelable Effets �conomiques ruraux Partage des revenus Propri�t� locale Allan G., McGregor P. et Swales K. L'importance du partage des revenus pour ce qui est des retomb�es �conomiques locales d'un programme d'�nergie renouvelable: une approche matricielle de la comptabilit� nationale, Regional Studies . Des cibles d'�nergie renouvelable ambitieuses exigent de l'investissement dans une nouvelle capacit� renouvelable dans des zones où l'agr�ment pourrait être touch� par les b�n�fices �conomiques potentielles de la r�gion. En même temps, les nouveaux programmes d'�nergie renouvelable, essentiellement en faveur du d�veloppement à terre de l'�nergie �olienne, pourrait constituer un moyen de soutenir des politiques de d�veloppement �conomique annexes. Employant des techniques portant sur les �changes interindustriels, il s'avère difficile d'�valuer avec pr�cision les retomb�es �conomiques de ces programmes, mais on peut mieux le faire à partir d'un cadre matriciel de la comptabilit� nationale. On emploie une matrice de la comptabilit� nationale pour les îles Shetland, situ�es au large de la côte septentrionale de l'Ecosse continentale, afin d'�valuer les effets locaux potentiels pour l'�conomie et l'emploi d'un important programme envisag� d'�nergie renouvelable à terre. Une analyse de sensibilit� laisse voir l'importance relative du niveau du ‘rendement à la communaut�’, de ‘l'approvisionnement local’ des inputs interm�d�aires, et du niveau de la propri�t� communautaire du programme par rapport à l'importance relative de ces effets. Pour ce qui est de l'�tude de cas des îles Shetland, la propri�t� locale entraîne de loin les effets �conomiques les plus importants pour la communaut� locale. Erneuerbare Energie Wirtschaftliche Auswirkung in ländlichen Gebieten Geteilte Einnahmen Beteiligung der Öffentlichkeit Allan G., McGregor P. und Swales K. Die Bedeutung von geteilten Einnahmen für die Auswirkungen eines Projekts für erneuerbare Energien auf die lokale Wirtschaft: ein Social-Accounting-Matrix-Ansatz, Regional Studies . Für ehrgeizige Ziele bei erneuerbaren Energien werden Investitionen in neue Kapazitäten für diese Energien in Gebieten benötigt, wo die Akzeptanz vom potenziellen wirtschaftlichen Nutzen für den Ort beeinflusst werden könnte. Gleichzeitig bieten neue Projekte für erneuerbare Energien -- insbesondere im Bereich der Onshore-Windenergie -- eine Möglichkeit zur Unterstützung von Maßnahmen zur Wirtschaftsentwicklung in Randgebieten. Die wirtschaftlichen Auswirkungen dieser Projekte lassen sich mit Input--Output-Techniken nur schwer quantifizieren; eine angemessenere Methode liegt im Rahmen einer Social Accounting Matrix (SAM). Anhand einer Social Accounting Matrix für die Shetland-Inseln vor der Nordküste Schottlands werden die potenziellen Auswirkungen eines geplanten Onshore-Windenergie-Großprojekts auf die lokale Wirtschaft und Beschäftigung untersucht. Durch eine Empfindlichkeitsanalyse wird die relative Bedeutung der Höhe der Zahlungen für den ‘Gemeinschaftsnutzen’, der ‘lokalen Beschaffung’ von intermediären Inputs und des Ausmaßes der Beteiligung der Gesellschaft am Projekt für den Umfang dieser Auswirkungen ermittelt. Im Fall der Shetland-Inseln führt lokales Eigentum zu den deutlich größten wirtschaftlichen Auswirkungen für die Gesellschaft vor Ort. Energ�a renovable Repercusiones económicas rurales Ingresos compartidos Propiedad comunitaria

Suggested Citation

  • Grant Allan & Peter Mcgregor & Kim Swales, 2011. "The Importance of Revenue Sharing for the Local Economic Impacts of a Renewable Energy Project: A Social Accounting Matrix Approach," Regional Studies, Taylor & Francis Journals, vol. 45(9), pages 1171-1186, March.
  • Handle: RePEc:taf:regstd:v:45:y:2011:i:9:p:1171-1186
    DOI: 10.1080/00343404.2010.497132
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2010.497132
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00343404.2010.497132?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. McCann, Philip, 2001. "Urban and Regional Economics," OUP Catalogue, Oxford University Press, number 9780198776451, Decembrie.
    2. Moran, Dominic & Sherrington, Chris, 2007. "An economic assessment of windfarm power generation in Scotland including externalities," Energy Policy, Elsevier, vol. 35(5), pages 2811-2825, May.
    3. Swenson, David A. & Eathington, Liesl, 2006. "Determining the Regional Economic Values of Ethanol Production in Iowa Considering Different Levels of Local Investment," Staff General Research Papers Archive 12687, Iowa State University, Department of Economics.
    4. Grant Allan & Peter Mcgregor & Kim Swales, 2011. "The Importance of Revenue Sharing for the Local Economic Impacts of a Renewable Energy Project: A Social Accounting Matrix Approach," Regional Studies, Taylor & Francis Journals, vol. 45(9), pages 1171-1186, March.
    5. Francois Bourguignon & Luiz A. Pereira da Silva, 2003. "The Impact of Economic Policies on Poverty and Income Distribution : Evaluation Techniques and Tools," World Bank Publications - Books, The World Bank Group, number 15090, December.
    6. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications - Books, The World Bank Group, number 6586, December.
    7. Learmonth, D. & McGregor, P.G. & Swales, J.K. & Turner, K.R. & Yin, Y.P., 2007. "The importance of the regional/local dimension of sustainable development: An illustrative Computable General Equilibrium analysis of the Jersey economy," Economic Modelling, Elsevier, vol. 24(1), pages 15-41, January.
    8. Swenson, David A., 2006. "Input-Outrageous: The Economic Impacts of Modern Biofuels Production," Staff General Research Papers Archive 12644, Iowa State University, Department of Economics.
    9. Deborah Roberts, 2005. "The role of households in sustaining rural economies: a structural path analysis," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 393-420, September.
    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. 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.
    2. Marcos Esaú Domínguez Viera, 2009. "Aplicación de un modelo de multiplicadores contables y de análisis estructural a políticas sociales seleccionadas en el estado de Nuevo León," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 95-137, November.
    3. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "The Expenditure Impacts of London-based Individual Higher Education Institutions (HEIs) and their Students on the Economy of England: Homogeneity or Heterogeneity?," Working Papers 1030, University of Strathclyde Business School, Department of Economics.
    4. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G & Swales, J Kim, 2010. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Welsh Economy: Homogeneity or Heterogeneity?," SIRE Discussion Papers 2010-88, Scottish Institute for Research in Economics (SIRE).
    5. Maurizio Bussolo & Rafael E De Hoyos & Denis Medvedev, 2010. "Economic growth and income distribution: linking macro-economic models with household survey data at the global level," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 92-103.
    6. Nabil Annabi & Fatou Cissé & John Cockburn & Bernard Decaluwé, 2005. "Trade Liberalisation, Growth and Poverty in Senegal: a Dynamic Microsimulation CGE Model Analysis," Cahiers de recherche 0512, CIRPEE.
    7. World Bank & International Monetary Fund, 2016. "Global Monitoring Report 2015/2016," World Bank Publications - Books, The World Bank Group, number 22547, December.
    8. Berka, Anna L. & Creamer, Emily, 2018. "Taking stock of the local impacts of community owned renewable energy: A review and research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3400-3419.
    9. repec:ilo:ilowps:464252 is not listed on IDEAS
    10. Sarah A. Low & Andrew M. Isserman, 2009. "Ethanol and the Local Economy," Economic Development Quarterly, , vol. 23(1), pages 71-88, February.
    11. Lester, T. William & Little, Mark G. & Jolley, G. Jason, 2015. "Assessing the Economic Impact of Alternative Biomass Uses: Biofuels, Wood Pellets, and Energy Production," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    12. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a tool for evaluating redistribution policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 77-106, April.
    13. Lulit Mitik & Bernard Decaluwé, 2009. "Market Labor, Household Work and Schooling in South Africa: Modeling the Effects of Trade on Adults' and Children's Time Allocation," Cahiers de recherche 0933, CIRPEE.
    14. Thomas W. Hertel & Jeffrey J. Reimer, 2006. "Predicting the Poverty Impacts of Trade Reform," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.
    15. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2011. "The Expendi ture Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Northern Irish Economy: Homogeneity or Heterogeneity?," Working Papers 1103, University of Strathclyde Business School, Department of Economics.
    16. Tarr, David G., 2013. "Putting Services and Foreign Direct Investment with Endogenous Productivity Effects in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 303-377, Elsevier.
    17. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G & Swales, J Kim, 2010. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Scottish Economy under Devolution: Homogeneity or Heterogeneity?," SIRE Discussion Papers 2010-64, Scottish Institute for Research in Economics (SIRE).
    18. Bussolo, Maurizio & De Hoyos, Rafael E. & Medvedev, Denis & van der Mensbrugghe, Dominique, 2007. "Global growth and distribution : are China and India reshaping the world?," Policy Research Working Paper Series 4392, The World Bank.
    19. Coulombe, Harold & Wodon, Quentin, 2012. "Benefit incidence of public health spending for public and faith-inspired health facilities in Ghana," MPRA Paper 45390, University Library of Munich, Germany.
    20. Brown, Jason P. & Weber, Jeremy G. & Wojan, Timothy R., 2013. "Emerging Energy Industries and Rural Growth," Economic Research Report 262215, United States Department of Agriculture, Economic Research Service.
    21. Oliver, Jill & Wodon, Quentin, 2012. "Mapping, Cost, and Reach to the Poor of Faith-Inspired Health Care Providers in Sub-Saharan Africa: Strengthening the Evidence for Faith-inspired Health Engagement in Africa, Volume 3," Health, Nutrition and Population (HNP) Discussion Paper Series 76223v3, The World Bank.

    More about this item

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

    Statistics

    Access and download statistics

    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:taf:regstd:v:45:y:2011:i:9:p:1171-1186. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    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.