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The Local Economic Impact of Wind Power Deployment

Author

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  • May, Nils G.

    (DIW Berlin - German Institute for Economic Research)

  • Nilsen, Øivind Anti

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

Abstract

Globally installed wind power capacity has grown tremendously since 2000. This study focuses on the local economic impacts of wind power deployment. A theoretical model shows that wind power deployment is not necessarily driven by locally-accruing economic payoffs, but also by other factors such as emphasis on environmentally-friendly energy production and its associated benefits. The theoretical analysis is followed by an empirical analysis using German county-level panel data. After controlling for a set of observable and unobservable factors, the results state that wind power installation has no impact on GDP per capita. These findings support the predictions from the theoretical model: local economic impacts cannot alone explain the observed increase in wind power capacity.

Suggested Citation

  • May, Nils G. & Nilsen, Øivind Anti, 2015. "The Local Economic Impact of Wind Power Deployment," Discussion Paper Series in Economics 9/2015, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2015_009
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    Cited by:

    1. Goetzke, Frank & Rave, Tilmann, 2016. "Exploring heterogeneous growth of wind energy across Germany," Utilities Policy, Elsevier, vol. 41(C), pages 193-205.
    2. Meya, Jasper N. & Neetzow, Paul, 2021. "Renewable energy policies in federal government systems," Energy Economics, Elsevier, vol. 101(C).
    3. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    4. Jan Stede & Nils May, 2020. "Way Off: The Effect of Minimum Distance Regulation on the Deployment of Wind Power," Discussion Papers of DIW Berlin 1867, DIW Berlin, German Institute for Economic Research.
    5. Mori-Clement, Yadira & Bednar-Friedl, Birgit, 2019. "Do Clean Development Mechanism Projects Generate Local Employment? Testing for Sectoral Effects across Brazilian Municipalities," Ecological Economics, Elsevier, vol. 157(C), pages 47-60.
    6. Yadira Mori Clement & Birgit Bednar-Friedl, 2017. "Do Clean Development Mechanism projects generate local employment? Testing for sectoral effects across Brazilian municipalities," Graz Economics Papers 2017-05, University of Graz, Department of Economics.

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    More about this item

    Keywords

    Wind Power; Economic Development; Panel Data.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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