The economic costs of NIMBYism: evidence from renewable energy projects

Jarvis, Stephen ORCID: 0000-0001-9039-3407 (2021) The economic costs of NIMBYism: evidence from renewable energy projects. . London School of Economics and Political Science, London, UK.

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Abstract

Large infrastructure projects can have important social benefits, but also prompt strong local opposition. This is often attributed to NIMBY (Not In My Backyard) attitudes. I study the economic costs of NIMBYism and local planning restrictions by looking at renewable energy projects. Using hedonic methods I find that wind projects can impose significant external local costs, while solar projects do not. I then show that planning officials are particularly sensitive to local costs in their area. The resulting misallocation of investment may have increased wind power deployment costs by 10-29%. I conclude by examining compensation payments as a policy solution.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/geography-and-environment/pe...
Additional Information:	© 2021 The Author
Divisions:	Geography & Environment
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HC Economic History and Conditions H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification:	Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q42 - Alternative Energy Sources R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q31 - Demand and Supply
Date Deposited:	07 Feb 2022 15:57
Last Modified:	14 Sep 2024 04:15
URI:	http://eprints.lse.ac.uk/id/eprint/113653

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