The Socioeconomics of Wind Power Expansion: Evidence from Sweden

We document the socioeconomics of wind power expansion in Sweden using two metrics. First, we compute the difference in socioeconomic status (SES) between residents exposed to wind power (0-2 km from the closest turbine) and those not exposed. For each site, the metric is computed ten years prior until five years after construction. When the comparison group is other residents within the same municipality, differences for all examined characteristics are either economically or statistically insignificant. However, compared to the national average, exposed residents have 14 percent lower earnings and approximately one year less of education. These differences remain approximately constant during the whole phase. Second, we exploit data on approved and rejected wind power applications to examine the association between the probability of approval and earnings and education of the exposed residents. We find a negative association between the probability of approval and both variables, although the association with education is more robust.