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

Author

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  • 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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    Cited by:

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    2. Yushi Kunugi & Toshi H. Arimura & Miwa Nakai, 2021. "The Long-Term Impact of Wind Power Generation on a Local Community: Economics Analysis of Subjective Well-Being Data in Chōshi City," Energies, MDPI, vol. 14(13), pages 1-18, July.
    3. Meya, Jasper N. & Neetzow, Paul, 2021. "Renewable energy policies in federal government systems," Energy Economics, Elsevier, vol. 101(C).
    4. Jasper Meya & Paul Neetzow, 2019. "Renewable energy policies in federal government systems," Working Papers V-423-19, University of Oldenburg, Department of Economics, revised Jul 2019.
    5. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    6. Christian Krekel & Julia Rechlitz & Johannes Rode & Alexander Zerrahn, 2020. "Quantifying the externalities of renewable energy plants using wellbeing data: The case of biogas," CEP Discussion Papers dp1738, Centre for Economic Performance, LSE.
    7. Dugstad, Anders & Grimsrud, Kristine & Kipperberg, Gorm & Lindhjem, Henrik & Navrud, Ståle, 2020. "Acceptance of wind power development and exposure – Not-in-anybody's-backyard," Energy Policy, Elsevier, vol. 147(C).
    8. Germeshausen, Robert & Heim, Sven & Wagner, Ulrich J., 2021. "Support for renewable energy: The case of wind power," ZEW Discussion Papers 21-074, ZEW - Leibniz Centre for European Economic Research.
    9. Krekel, Christian & Zerrahn, Alexander, 2017. "Does the presence of wind turbines have negative externalities for people in their surroundings? Evidence from well-being data," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 221-238.
    10. Anders Dugstad & Kristine Grimsrud & Gorm Kipperberg & Henrik Lindhjem & Ståle Navrud, 2020. "Acceptance of national wind power development and exposure. A case-control choice experiment approach," Discussion Papers 933, Statistics Norway, Research Department.
    11. Lehmann, Paul & Reutter, Felix & Tafarte, Philip, 2021. "Optimal siting of onshore wind turbines: Local disamenities matter," UFZ Discussion Papers 4/2021, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    12. Welsch, Heinz, 2016. "Electricity Externalities, Siting, and the Energy Mix: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 10(1), pages 57-94, November.
    13. Meier, Jan-Niklas & Lehmann, Paul, 2020. "Optimal federal co-regulation of renewable energy deployment," UFZ Discussion Papers 8/2020, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    14. Núria Sánchez-Pantoja & Rosario Vidal & M. Carmen Pastor, 2021. "EU-Funded Projects with Actual Implementation of Renewable Energies in Cities. Analysis of Their Concern for Aesthetic Impact," Energies, MDPI, vol. 14(6), pages 1-24, March.
    15. Hsiao, Yao-Jen & Chen, Jyun-Long & Huang, Cheng-Ting, 2021. "What are the challenges and opportunities in implementing Taiwan's aquavoltaics policy? A roadmap for achieving symbiosis between small-scale aquaculture and photovoltaics," Energy Policy, Elsevier, vol. 153(C).
    16. Jones, Benjamin A., 2021. "Planting urban trees to improve quality of life? The life satisfaction impacts of urban afforestation," Forest Policy and Economics, Elsevier, vol. 125(C).
    17. Heinz Welsch & Philipp Biermann, 2017. "Energy Affordability and Subjective Well-Being: Evidence for European Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    18. Awaworyi Churchill, Sefa & Smyth, Russell & Farrell, Lisa, 2020. "Fuel poverty and subjective wellbeing," Energy Economics, Elsevier, vol. 86(C).
    19. Jones, Benjamin A., 2018. "Measuring externalities of energy efficiency investments using subjective well-being data: The case of LED streetlights," Resource and Energy Economics, Elsevier, vol. 52(C), pages 18-32.
    20. Hayibo, Koami Soulemane & Pearce, Joshua M., 2021. "A review of the value of solar methodology with a case study of the U.S. VOS," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    21. Christine Bertram & Jan Goebel & Christian Krekel & Katrin Rehdanz, 2022. "Urban Land Use Fragmentation and Human Well-Being," Land Economics, University of Wisconsin Press, vol. 98(2), pages 399-420.
    22. Dobers, Geesche M., 2019. "Acceptance of biogas plants taking into account space and place," Energy Policy, Elsevier, vol. 135(C).
    23. Sánchez-Pantoja, Núria & Vidal, Rosario & Pastor, M. Carmen, 2018. "Aesthetic impact of solar energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 227-238.

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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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