Ex post analysis of economic impacts from wind power development in U.S. counties

Brown, Jason P.; Pender, John; Wiser, Ryan; Lantz, Eric; Hoen, Ben

doi:10.1016/j.eneco.2012.07.010

Cited by 98 publications

(79 citation statements)

References 40 publications

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“…no air or water pollution, no use of water during the generation of energy, and no generation of solid or hazardous waste that requires permanent storage/disposal (IPCC, 2011). Moreover, wind facilities can, and often do, provide economic benefits to local communities (Lantz and Tegen, 2009;Slattery et al, 2011;Brown et al, 2012;Loomis et al, 2012), which might not be the case for all other disamenities. Similarly, wind facilities can have direct positive effects on local government budgets through property tax or other similar payments (Loomis and Aldeman, 2011), which might, for example, improve school quality and thus increase nearby home values (e.g., Haurin and Brasington, 1996;Kane et al, 2006).…”

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confidence: 99%

A Spatial Hedonic Analysis of the Effects of Wind Energy Facilities on Surrounding Property Values in the United States

Hoen

2013

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Previous research on the effects of wind energy facilities on surrounding home values has been limited by small samples of relevant home-sale data and the inability to account adequately for confounding home-value factors and spatial dependence in the data. This study helps fill those gaps. We collected data from more than 50,000 home sales among 27 counties in nine states.These homes were within 10 miles of 67 different wind facilities, and 1,198 sales were within 1 mile of a turbine-many more than previous studies have collected. The data span the periods well before announcement of the wind facilities to well after their construction. We use OLS and spatial-process difference-in-difference hedonic models to estimate the home-value impacts of the wind facilities; these models control for value factors existing before the wind facilities' announcements, the spatial dependence of unobserved factors effecting home values, and value changes over time. A set of robustness models adds confidence to our results. Regardless of model specification, we find no statistical evidence that home values near turbines were affected in the post-construction or post-announcement/pre-construction periods. Previous research on potentially analogous disamenities (e.g., high-voltage transmission lines, roads) suggests that the property-value effect of wind turbines is likely to be small, on average, if it is present at all, potentially helping to explain why no evidence of an effect was found in the present research.iv

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A Spatial Hedonic Analysis of the Effects of Wind Energy Facilities on Surrounding Property Values in the United States

Hoen

2013

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“…These decisions, along with public opinion about wind farms, are shaped by the perception of the local economic impacts of such projects. Often it is argued that such wind power deployment will be economically beneficial for the area and, among other things, that 29 The difference in results compared to Brown et al (2012) does not stem from the different methodological approach. It remains also when applying an estimator similar to their quasi-crosssectional one.…”

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confidence: 99%

“…It could be argued, as for instance Brown et al (2012) do, that empirical assessment have the advantage over model-based simulations that they yield ex-post actual outcome-based insights, rather than ex-ante model simulations. These latter approaches include for instance econometric input-output (see for instance Rey 2000) and the CGE approach (see for instance Turner et al 2012).…”

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“…Except Brown et al (2012), who use a quasi-crosssectional approach, most existing studies analyze single wind power deployment projects instead of conducting analyzes on average outcomes. Through the use of panel data, the potential endogeneity and selection issues -if the installation of wind power is affected by effects of unobserved, individual factors in the counties -can be addressed.…”

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“…Brown et al (2012) conduct an empirical analysis of local economic effects in wind-rich regions in the US. In their quasi-cross-sectional approach, they find that per capita labor income at the county-level is increased by 11,500 USD/MW.…”

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The Local Economic Impact of Wind Power Deployment.

May

Nilsen

2015

SSRN Journal

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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.

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What Blows in with the Wind?

Silva¹,

McComb²,

Schiller³

2015

Southern Economic Journal

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The shift toward renewable forms of energy for electricity generation in the electricity generation industry has clear implications for the spatial distribution of generating plant. Traditional forms of generation are typically located close to the load or population centers, while wind and solar-powered generation must be located where the energy source is found. In the case of wind, this has meant signi…cant new investment in wind plant in primarily rural areas that have been in secular economic decline. This paper investigates the localized economic impacts of the rapid increase in wind power capacity at the county level in Texas. Unlike Input-Output impact analysis that relies primarily on levels of inputs to estimate gross impacts, we use traditional econometric methods to estimate net localized impacts in terms of employment, personal income, property tax base, and key public school expenditure levels. While we …nd evidence that both direct and indirect employment impacts are modest, signi…cant increases in per capita income accompany wind power development. County and school property tax rolls also realize important bene…ts from the local siting of utility scale wind power although peculiarities in Texas school funding shift localized property tax bene…ts to the state.JEL Classi…cation: H23, H72, Q42, Q48, R11.

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Ex post analysis of economic impacts from wind power development in U.S. counties

Cited by 98 publications

References 40 publications

A Spatial Hedonic Analysis of the Effects of Wind Energy Facilities on Surrounding Property Values in the United States

A Spatial Hedonic Analysis of the Effects of Wind Energy Facilities on Surrounding Property Values in the United States

The Local Economic Impact of Wind Power Deployment.

What Blows in with the Wind?

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