Quantifying the externalities of renewable energy plants using wellbeing data: the case of biogas

Krekel, Christian, Rechlitz, Julia, Rode, Johannes and Zerrahn, Alexander (2020) Quantifying the externalities of renewable energy plants using wellbeing data: the case of biogas. CEP Discussion Papers (CEPDP1738). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

Although there is strong support for renewable energy plants, they are often met with local resistance. We quantify the externalities of renewable energy plants using well-being data. We focus on the example of biogas, one of the most frequently deployed technologies besides wind and solar. To this end, we combine longitudinal household data with novel panel data on more than 13,000 installations in Germany. Identification rests on a spatial difference-in-differences design exploiting exact geographical coordinates of households, biogas installations and wind direction and intensity. We find limited evidence for negative externalities: impacts are moderate in size and spatially confined to a radius of 2, 000 metres around plants. We discuss implications for research and regional planning, in particular minimum setback distances and potential monetary compensations.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2020 The Authors
Divisions:	Psychological and Behavioural Science
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C23 - Models with Panel Data Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q42 - Alternative Energy Sources Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R20 - General
Date Deposited:	22 Jan 2021 10:21
Last Modified:	11 Dec 2024 19:37
URI:	http://eprints.lse.ac.uk/id/eprint/108526

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