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The Local Economic Impact of Wind Power Deployment

Author

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  • May, Nils G.

    (DIW Berlin)

  • Nilsen, Øivind Anti

    (Norwegian School of Economics)

Abstract

Globally installed wind power capacity has grown tremendously since 2000. This study focuses on the local economic impacts of wind power deployment. A theoretical model shows that wind power deployment is not necessarily driven by locally-accruing economic payoffs, but also by other factors such as emphasis on environmentally-friendly energy production and its associated benefits. The theoretical analysis is followed by an empirical analysis using German county-level panel data. After controlling for a set of observable and unobservable factors, the results state that wind power installation has no impact on GDP per capita. These findings support the predictions from the theoretical model: local economic impacts cannot alone explain the observed increase in wind power capacity.

Suggested Citation

  • May, Nils G. & Nilsen, Øivind Anti, 2015. "The Local Economic Impact of Wind Power Deployment," IZA Discussion Papers 9025, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9025
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    Cited by:

    1. Goetzke, Frank & Rave, Tilmann, 2016. "Exploring heterogeneous growth of wind energy across Germany," Utilities Policy, Elsevier, vol. 41(C), pages 193-205.
    2. Meya, Jasper N. & Neetzow, Paul, 2021. "Renewable energy policies in federal government systems," Energy Economics, Elsevier, vol. 101(C).
    3. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    4. Jan Stede & Nils May, 2020. "Way Off: The Effect of Minimum Distance Regulation on the Deployment of Wind Power," Discussion Papers of DIW Berlin 1867, DIW Berlin, German Institute for Economic Research.
    5. Mori-Clement, Yadira & Bednar-Friedl, Birgit, 2019. "Do Clean Development Mechanism Projects Generate Local Employment? Testing for Sectoral Effects across Brazilian Municipalities," Ecological Economics, Elsevier, vol. 157(C), pages 47-60.
    6. Yadira Mori Clement & Birgit Bednar-Friedl, 2017. "Do Clean Development Mechanism projects generate local employment? Testing for sectoral effects across Brazilian municipalities," Graz Economics Papers 2017-05, University of Graz, Department of Economics.

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    More about this item

    Keywords

    wind power; economic development; panel data;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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