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Sustainable Electricity Grid Development and the Public: An Economic Approach

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  • Wenche Tobiasson

    (Durham University Business School)

  • Tooraj Jamasb

    (Durham University Business School)

Abstract

Increasingly, local opposition to new electricity grid development projects cause lengthy delays and places financial and practical strain on the projects. The structure of the electricity industry is in transition due to the emergence of smaller but more numerous electricity generation facilities. Also, the general public and local communities are increasingly active and engage with energy and environmental issues. Thus, the traditional decision making frameworks and processes are proving less effective in solving the present time conflicts between local communities and other stakeholders. This paper proposes an economic approach to resolve such conflicts. This paper discusses how compensation, benefit sharing, and property rights can play a role in reducing community opposition to new grid developments. We argue that these methods need to be part of an overarching societal strategy and policy towards environmental effects of grid development. We then propose that such impacts can be addressed within the framework of 'weak' versus 'strong' sustainability. Finally, we suggest that the concepts of 'collective negotiation' and 'menu of options' in regulatory economics can be adapted to operationalize this sustainability-based approach to community engagement with new grid projects
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Wenche Tobiasson & Tooraj Jamasb, 2014. "Sustainable Electricity Grid Development and the Public: An Economic Approach," Working Papers EPRG 1411, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:eprg1411
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    Cited by:

    1. Wenche Tobiasson & Christina Beestermöller & Tooraj Jamasb, 2016. "Public engagement in electricity network development: the case of the Beauly–Denny project in Scotland," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(2), pages 105-126, June.

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    More about this item

    Keywords

    Electricity transmission; Social sustainability; public and local opposition; compensation and benefit sharing.;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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