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The Social-Environmental Impacts Of Renewable Energy Expansion In Scotland

Author

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  • Bergmann, E. Ariel
  • Colombo, Sergio
  • Hanley, Nick

Abstract

Investments in renewable energy, such as new wind farms and hydro schemes, are being promoted as a new means of diversifying rural employment in Scotland*. However, such investments are associated with a range of environmental impacts which might be detrimental to other economic activities, such as those based on nature tourism. When designing policy instruments for more sustainable energy futures, therefore, the main goal is to generate the lowest possible adverse socio-economic and environmental impacts ensuring a certain degree of economic efficiency. We use a Choice Experiment to quantify peoples' preferences over these multiple impacts of renewable energy in Scotland. We find that landscape, wildlife and air pollution impacts are all significant for both urban and rural respondents. Only rural respondents, however, value job creation. We also show the differences in the welfare gain associated with alternative renewable energy investments between rural and urban households.

Suggested Citation

  • Bergmann, E. Ariel & Colombo, Sergio & Hanley, Nick, 2007. "The Social-Environmental Impacts Of Renewable Energy Expansion In Scotland," 81st Annual Conference, April 2-4, 2007, Reading University, UK 7964, Agricultural Economics Society.
  • Handle: RePEc:ags:aes007:7964
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    File URL: http://ageconsearch.umn.edu/record/7964/files/cp07be01.pdf
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    References listed on IDEAS

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    1. Polatidis, Heracles & Haralambopoulos, Dias A., 2007. "Renewable energy systems: A societal and technological platform," Renewable Energy, Elsevier, vol. 32(2), pages 329-341.
    2. Madlener, Reinhard & Stagl, Sigrid, 2005. "Sustainability-guided promotion of renewable electricity generation," Ecological Economics, Elsevier, vol. 53(2), pages 147-167, April.
    3. David Hensher, 2001. "The valuation of commuter travel time savings for car drivers: evaluating alternative model specifications," Transportation, Springer, vol. 28(2), pages 101-118, May.
    4. Bikam, P. & Mulaudzi, D.J., 2006. "Solar energy trial in Folovhodwe South Africa: Lessons for policy and decision-makers," Renewable Energy, Elsevier, vol. 31(10), pages 1561-1571.
    5. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    6. Hanley, Nick & Nevin, Ceara, 1999. "Appraising renewable energy developments in remote communities: the case of the North Assynt Estate, Scotland," Energy Policy, Elsevier, vol. 27(9), pages 527-547, September.
    7. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    8. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, October.
    9. Abbasi, S. A. & Abbasi, Naseema, 2000. "The likely adverse environmental impacts of renewable energy sources," Applied Energy, Elsevier, vol. 65(1-4), pages 121-144, April.
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    Cited by:

    1. Vanja WESTERBERG & Jette BREDAHL JACOBSEN & Robert LIFRAN, 2012. "The Multi-faceted Nature of Preferences for Offshore Wind Farm Siting," Working Papers 12-22, LAMETA, Universitiy of Montpellier, revised Jul 2012.

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    Resource /Energy Economics and Policy;

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