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Support for Renewable Energy: The Case of Wind Power

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

Abstract

Successful decarbonization requires strong growth in renewable electricity capacity. Citizens’ support for this is crucial given that these technologies emit negative externalities locally. We estimate the impact of wind turbine deployment on granular measures of revealed preferences for renewable electricity in product and political markets. We address potentially endogenous siting of turbines with an IV design that exploits quasi-experimental variation in profitability. We find that wind turbines significantly reduce citizens’ support locally, but this effect quickly fades with distance from the site. We discuss recent policy proposal for enhancing citizens’ support for renewable energy in light of our results.

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  • Germeshausen, Robert & Heim, Sven & Wagner, Ulrich, 2022. "Support for Renewable Energy: The Case of Wind Power," CEPR Discussion Papers 17603, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17603
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    Cited by:

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    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.
    4. Fabra, Natalia & Reguant, Mar, 2024. "The energy transition: A balancing act," Resource and Energy Economics, Elsevier, vol. 76(C).
    5. Lundin, Erik & von Platten, Jenny, 2024. "The Socioeconomics of Wind Power Expansion: Evidence from Sweden," Working Paper Series 1511, Research Institute of Industrial Economics.

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    More about this item

    Keywords

    Elections; Externalities; Revealed preference; Renewable energy;
    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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