Do renewable energies create local jobs?

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