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The Economic Costs of NIMBYism - Evidence From Renewable Energy Projects

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  • Stephen Jarvis

Abstract

Large infrastructure projects can create widespread societal benefits, but also fre- quently prompt strong local opposition. This is sometimes pejoratively labeled NIMBY (Not In My Backyard) behavior. In this paper I estimate the economic costs of NIMBYism and its role in local planning decisions. To do this I use de- tailed data on all major renewable energy projects proposed in the United Kingdom spanning three decades. First, I use hedonic methods to show that wind projects impose significant negative local costs, while solar projects do not. I then show that planning officials are particularly responsive to the local costs imposed within their jurisdictions, but fail to account for variation in these costs across jurisdic- tions. The result has been a systematic misallocation of investment, which may have increased the cost of deploying wind power by 10-29%. Much of this can be attributed to the fragmented and localized nature of the planning process.

Suggested Citation

  • Stephen Jarvis, 2021. "The Economic Costs of NIMBYism - Evidence From Renewable Energy Projects," CRC TR 224 Discussion Paper Series crctr224_2021_300, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2021_300
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    Cited by:

    1. David Cuberes & Aitor Lacuesta & Carlos Moreno-Pérez & Daniel Oto-Peralías, 2025. "Land concentration and large renewable energy projects," Working Papers 25.03, Universidad Pablo de Olavide, Department of Economics.
    2. repec:osf:osfxxx:hakt5_v1 is not listed on IDEAS
    3. Olivier Blanchard & Christian Gollier & Jean Tirole, 2023. "The Portfolio of Economic Policies Needed to Fight Climate Change," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 689-722, September.
    4. repec:osf:osfxxx:hakt5_v2 is not listed on IDEAS
    5. Blanchard, Olivier Jean & Gollier, Christian & Tirole, Jean, 2022. "Fighting the war against climate change," TSE Working Papers 22-1360, Toulouse School of Economics (TSE).
    6. Brunner, Eric J. & Hoen, Ben & Rand, Joe & Schwegman, David, 2024. "Commercial wind turbines and residential home values: New evidence from the universe of land-based wind projects in the United States," Energy Policy, Elsevier, vol. 185(C).
    7. Fabra, Natalia & Gutiérrez, Eduardo & Lacuesta, Aitor & Ramos, Roberto, 2024. "Do renewable energy investments create local jobs?," Journal of Public Economics, Elsevier, vol. 239(C).
    8. Dong, Luran & Lang, Corey, 2022. "Do views of offshore wind energy detract? A hedonic price analysis of the Block Island wind farm in Rhode Island," Energy Policy, Elsevier, vol. 167(C).
    9. Hideki Shimada & Kenji Asano & Yu Nagai & Akito Ozawa, 2022. "Assessing the Impact of Offshore Wind Power Deployment on Fishery: A Synthetic Control Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 791-829, November.
    10. Elmallah, Salma & Hoen, Ben & Fujita, K. Sydny & Robson, Dana & Brunner, Eric, 2023. "Shedding light on large-scale solar impacts: An analysis of property values and proximity to photovoltaics across six U.S. states," Energy Policy, Elsevier, vol. 175(C).
    11. Oto-Peralías, Daniel & Cuberes, David, 2023. "Land Concentration and Mega Photovoltaic Plants," OSF Preprints hakt5, Center for Open Science.
    12. Mirosława Witkowska-Dabrowska & Natalia Świdyńska & Agnieszka Napiórkowska-Baryła, 2021. "Attitudes of Communities in Rural Areas towards the Development of Wind Energy," Energies, MDPI, vol. 14(23), pages 1-24, December.
    13. Yingdan Mei & Jixiang Qiu & Yueming Lucy Qiu & Pengfei Liu, 2024. "Estimation of Property Value Changes from Nearby Carbon Capture and Utilization Projects in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(10), pages 2717-2742, October.

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    Keywords

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    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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