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Regional income and wave energy deployment in Ireland

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  • Niall Farrell
  • Cathal O'Donoghue
  • Karyn Morrissey

Abstract

Alongside environmental benefits, renewable energy deployment is often evaluated on grounds of regional development. Focusing on wave energy deployment in Ireland, this paper quantifies employment‐related welfare change net of associated subsidy costs. Although the added employment reduces inter‐regional inequality, certain subsidies increase total income inequality by a greater extent. Total inequality increases by 0.25% in the preferred scenario. This pattern of incidence persists under an optimistic scenario where all manufacturing activity is carried out locally. This finding highlights that policies of regional development should consider the spatial distribution of associated subsidy costs. Además de los beneficios ambientales, el despliegue de energías renovables suele evaluarse en función del desarrollo regional. Centrándose en la captación de la energía procedente de las olas en Irlanda, este artículo cuantifica el cambio de bienestar relacionado con el empleo, una vez descontados los costos asociados de los subsidios. Si bien el empleo añadido reduce la desigualdad interregional, ciertos subsidios aumentan en mayor medida la desigualdad total de los ingresos. La desigualdad total aumenta en un 0,25% en el escenario preferido. Esta pauta de incidencia persiste en un escenario optimista en el que toda la actividad manufacturera se lleva a cabo localmente. Este hallazgo pone de relieve que las políticas de desarrollo regional deberían considerar la distribución espacial de los costos asociados de los subsidios. 再生可能エネルギーの導入は、環境保全の評価とともに、地域開発の観点から評価されることが多い。本稿では、アイルランドの波浪エネルギーの導入に注目し、関連する補助金コストを差し引いた雇用関連の福祉の変化を定量化する。雇用の増加は地域間の不平等を減少させるものの、特定の補助金は所得の不平等を大幅に拡大させる。希望的なシナリオでは、不平等は全体で0.25%拡大する。この発生パターンは、すべての製造活動が地域において行われるという楽観的シナリオの下で持続するものである。この知見から、地域開発政策は関連する補助金の空間的分布を考慮したものであるべきことが強調される。

Suggested Citation

  • Niall Farrell & Cathal O'Donoghue & Karyn Morrissey, 2020. "Regional income and wave energy deployment in Ireland," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 509-531, June.
  • Handle: RePEc:bla:presci:v:99:y:2020:i:3:p:509-531
    DOI: 10.1111/pirs.12488
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