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What blows in with the wind?

  • De Silva, Dakshina G.
  • McComb, Robert P.
  • Schiller, Anita R.

The shift toward renewable forms of energy for electricity generation in the electricity generation industry has clear implications for the spatial distribution of generating plant. Traditional forms of generation are typically located close to the load or population centers, while wind and solar-powered generation must be located where the energy source is found. In the case of wind, this has meant significant new investment in wind plant in primarily rural areas that have been in secular economic decline. This paper investigates the localized economic impacts of the rapid increase in wind power capacity at the county level in Texas. Unlike Input-Output impact analysis that relies primarily on levels of inputs to estimate gross impacts, we use traditional econometric methods to estimate net localized impacts in terms of employment, personal income, and property tax base. While we find evidence that both direct and indirect employment impacts are modest, significant increases in per capita income accompany wind power development. County and school property tax rolls also realize important benefits from the local siting of utility scale wind power.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 51915.

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Date of creation: 02 Dec 2013
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Handle: RePEc:pra:mprapa:51915
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  1. Caselli, Francesco & Michaels, Guy, 2009. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," CEPR Discussion Papers 7579, C.E.P.R. Discussion Papers.
  2. Weber, Jeremy G., 2014. "A decade of natural gas development: The makings of a resource curse?," Resource and Energy Economics, Elsevier, vol. 37(C), pages 168-183.
  3. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
  4. Papyrakis, Elissaios & Gerlagh, Reyer, 2007. "Resource abundance and economic growth in the United States," European Economic Review, Elsevier, vol. 51(4), pages 1011-1039, May.
  5. Olmsted, George M. & Denzau, Arthur T. & Roberts, Judith A., 1993. "We voted for this? : Institutions and educational spending," Journal of Public Economics, Elsevier, vol. 52(3), pages 363-376, October.
  6. James, Alex & Aadland, David, 2011. "The curse of natural resources: An empirical investigation of U.S. counties," Resource and Energy Economics, Elsevier, vol. 33(2), pages 440-453, May.
  7. Wiser, Ryan & Bolinger, Mark & Barbose, Galen, 2007. "Using the Federal Production Tax Credit to Build a Durable Market for Wind Power in the United States," The Electricity Journal, Elsevier, vol. 20(9), pages 77-88, November.
  8. Brown, Jason P. & Pender, John & Wiser, Ryan & Lantz, Eric & Hoen, Ben, 2012. "Ex post analysis of economic impacts from wind power development in U.S. counties," Energy Economics, Elsevier, vol. 34(6), pages 1743-1754.
  9. Joana Naritomi & Rodrigo R. Soares & Juliano J. Assunção, 2007. "Rent Seeking and the Unveiling of 'De Facto' Institutions: Development and Colonial Heritage within Brazil," NBER Working Papers 13545, National Bureau of Economic Research, Inc.
  10. Aragon, Fernando & Rud, Juan, 2009. "The Blessing of Natural Resources: Evidence from a Peruvian Gold Mine," Working Papers 2009-014, Banco Central de Reserva del Perú.
  11. Slattery, Michael C. & Lantz, Eric & Johnson, Becky L., 2011. "State and local economic impacts from wind energy projects: Texas case study," Energy Policy, Elsevier, vol. 39(12), pages 7930-7940.
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