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Measuring Renewable Energy Externalities: Evidence from Subjective Well-Being Data

Author

Listed:
  • Charlotte von Moellendorff

    (University of Oldenburg, Department of Economics)

  • Heinz Welsch

    (University of Oldenburg, Department of Economics)

Abstract

Electricity from renewable sources avoids the disadvantages of conventional power generation (air pollution, greenhouse gases, nuclear risk) but often meets with local resistance due to visual, acoustic, and odor nuisance. We use representative panel data on the subjective well-being of 36,475 individuals in Germany, 1994 - 2012, for identifying and valuing the local externalities from wind, solar and biomass plants. While the well-being effects of windturbines refer mainly to initial installations and tend to dissipate over time, the effects of solar and biomass plants build up gradually as their number and capacity rises. In a spatial perspective, power generation from biomass creates negative spillovers to adjacent localities that are absent in the case of wind power.

Suggested Citation

  • Charlotte von Moellendorff & Heinz Welsch, 2014. "Measuring Renewable Energy Externalities: Evidence from Subjective Well-Being Data," Working Papers V-373-14, University of Oldenburg, Department of Economics, revised Dec 2014.
    • Handle: RePEc:old:dpaper:373
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    More about this item

    Keywords

    renewable energy; local externality; subjective well-being; life satisfaction; non-market valuation;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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