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Wind Farms – Where and how to put them?


  • Kristina, Ek

    () (Luleå University of Technology, Department of business administration, technology and social sciences)

  • Persson, Lars

    () (Department of Economics, Umeå School of Business and Economics)


This paper aims at measuring preferences for attributes related to the establishment of wind power farms among the general public in Sweden. The method applied is a choice experiment where people are asked to choose between two hypothetical wind farms, each characterized by different attributes. Five attributes are included in the experiment: (i) type of landscape, (ii) ownership, (iii) the extent to which the local public is invited to participate in the planning process, (iv) the choice to transfer revenue to the society in a pre-specified way, and (v) a monetary cost in terms of an additional electricity certificate fee. The results are based on the survey responses from 1500 individuals and show that all attributes have a significant impact on the choice of the preferred wind farm. The results indicate that the electricity consumers in Sweden are more likely to accept the higher costs (through the renewable electricity certificate fee) if; (a) wind power farms in areas used for recreational purposes are substantially avoided, (b) if the establishment is anchored by whole or partly ownership in the local community and, (c) if the local population is involved in the planning and implementation process. Our policy simulation exercise shows that respondents are willing to pay a higher electricity fee corresponding to about four öre to avoid wind farms located in the mountainous area and to avoid private ownership. People consider extended consultation processes and earmarked transfers for nature conservation to the local community as changes for the better, while the opposition towards wind energy in the mountainous areas and privately owned wind farms dominates the positive effects from consultation and transfers.

Suggested Citation

  • Kristina, Ek & Persson, Lars, 2012. "Wind Farms – Where and how to put them?," Umeå Economic Studies 854, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0854

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    References listed on IDEAS

    1. Arthur Caplan & Emilson Silva, 2011. "Impure public goods, matching grant rates and income redistribution in a federation with decentralized leadership and imperfect labor mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(3), pages 322-336, June.
    2. Caplan, Arthur J. & Silva, Emilson C. D., 1999. "Federal Acid Rain Games," Journal of Urban Economics, Elsevier, vol. 46(1), pages 25-52, July.
    3. Silva, Emilson C. D. & Caplan, Arthur J., 1997. "Transboundary Pollution Control in Federal Systems," Journal of Environmental Economics and Management, Elsevier, vol. 34(2), pages 173-186, October.
    4. Thomas Aronsson Aronsson & Thomas Jonsson & Tomas Sjögren, 2006. "Environmental Policy and Optimal Taxation in a Decentralized Economic Federation," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(3), pages 437-454, September.
    5. Caplan, Arthur J. & Cornes, Richard C. & Silva, Emilson C. D., 2000. "Pure public goods and income redistribution in a federation with decentralized leadership and imperfect labor mobility," Journal of Public Economics, Elsevier, vol. 77(2), pages 265-284, August.
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    Cited by:

    1. Ladenburg, Jacob, 2014. "Dynamic properties of the preferences for renewable energy sources – A wind power experience-based approach," Energy, Elsevier, vol. 76(C), pages 542-551.

    More about this item


    wind power farm establishment; preferences; choice experiment; public opinion;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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