Do renewable energies create local jobs?

70 Pages Posted: 26 Jan 2023 Last revised: 9 Nov 2023

See all articles by Natalia Fabra

Natalia Fabra

Charles III University of Madrid

Eduardo Gutiérrez Chacón

Banco de España

Aitor Lacuesta

Banco de España

Roberto Ramos

Banco de España

Multiple version iconThere are 2 versions of this paper

Date Written: January 26, 2023

Abstract

Globally, renewable energy deployment often faces opposition from local communities. Why do residents oppose those investments, despite the expectation that the investments will create new jobs? Exploiting the monthly variation in the timing and size of the renewable investments across more than 3,900 Spanish municipalities over 13 years, we find that the new jobs do not always remain in the municipalities where the ventures are built. We find substantial heterogeneity in the magnitude and pattern of the impacts of solar and wind investments, reflecting differences in the tasks and skills involved. On average, solar investments increase employment by local firms and reduce unemployment of residents. Conversely, the impacts of wind investments on local employment and unemployment are weak and non-significant. These findings have important implications for public policy.

Keywords: renewable energy, employment, unemployment, NIMBY, spatial effects

JEL Classification: L94, C33, O25, R23

Suggested Citation

Fabra, Natalia and Gutiérrez Chacón, Eduardo and Lacuesta, Aitor and Ramos, Roberto, Do renewable energies create local jobs? (January 26, 2023). Banco de Espana Working Paper No. 2307, Available at SSRN: https://ssrn.com/abstract=4338642 or http://dx.doi.org/10.2139/ssrn.4338642

Natalia Fabra (Contact Author)

Charles III University of Madrid ( email )

CL. de Madrid 126
Madrid, 28903
Spain

Eduardo Gutiérrez Chacón

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Aitor Lacuesta

Banco de España ( email )

Madrid 28014
Spain

Roberto Ramos

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

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