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Where does the wind blow? Green preferences and spatial misallocation in renewable energy sector

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  • Yatang Lin

Abstract

Are "greener" investments less efficient? This paper looks at the location choices by wind power investors. I measures the efficiency loss in this sector due to wrong project location and explore the factors contributing to it. Using extensive information on wind resources, transmission, electricity price and other restrictions that might affect the siting of wind farms, I calculate the predicted profitability of wind power projects for all the possible places across the contiguous US, use it as a counterfactual for profit-maximizing wind power investment and compare it to the actual placement of wind farms.

Suggested Citation

  • Yatang Lin, 2016. "Where does the wind blow? Green preferences and spatial misallocation in renewable energy sector," CEP Discussion Papers dp1424, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1424
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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