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Support for renewable energy: The case of wind power

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  • Germeshausen, Robert
  • Heim, Sven
  • Wagner, Ulrich J.

Abstract

Successful decarbonization of the electricity sector hinges on the support of the public, which is at risk when electricity generation emits local externalities. This paper estimates the impact of wind turbine deployment on granular measures of revealed preferences for renewable electricity in product and political markets. We address endogenous siting of turbines with a novel IV approach that exploits quasi-experimental variation in profitability. We find that nearby wind turbines significantly reduce citizens' support, but this effect quickly fades with distance from the site. Our results shed light on how distance requirements and financial participation could enhance support for renewables.

Suggested Citation

  • 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.
  • Handle: RePEc:zbw:zewdip:21074
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    Cited by:

    1. Lundin, Erik, 2023. "Wind Power and the Cost of Local Compensation Schemes: A Swedish Revenue Sharing Policy Simulation," Working Paper Series 1467, Research Institute of Industrial Economics.
    2. Lundin, Erik, 2023. "Wind Power Approval, Decentralization, and NIMBYism: Evidence from the Swedish Greens," Working Paper Series 1464, Research Institute of Industrial Economics.
    3. Oto-Peralías, Daniel & Cuberes, David, 2023. "Land Concentration and Mega Photovoltaic Plants," OSF Preprints hakt5, Center for Open Science.

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    More about this item

    Keywords

    Renewable energy; Wind power; Public support; Elections; Externalities;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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