Support for Renewable Energy: The Case of Wind Power
CRC TR 224, Discussion Paper No. 390
63 Pages Posted: 27 Oct 2021 Last revised: 9 Mar 2023
Date Written: January 18, 2023
The rise of societal goals like climate change mitigation and energy security calls for rapid capacity growth in renewable electricity sources, yet citizens’ support is put to a test when such technologies emit negative local externalities. 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 induced by subsidies. We find that wind turbines significantly reduce citizens’ support locally, but this effect quickly fades with distance from the site. We assess policy instruments for enhancing citizens’ support for renewable energy in light of our results.
Keywords: Renewable energy, Wind power, Public support, Elections, Externalities
JEL Classification: D12, D72, Q42, Q48 Q50
Suggested Citation: Suggested Citation