The economic costs of NIMBYism: evidence from renewable energy projects

Jarvis, Stephen ORCID: 0000-0001-9039-3407 (2025) The economic costs of NIMBYism: evidence from renewable energy projects. Journal of the Association of Environmental and Resource Economists, 12 (4). 983 - 1022. ISSN 2333-5955

	Text (jarvis_nimbyism_paper) - Accepted Version Repository staff only until 27 May 2026. Download (2MB)
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Abstract

Large infrastructure projects have important social benefits but can also prompt strong local opposition. I estimate the economic costs of NIMBY (not in my backyard) attitudes and local planning restrictions by studying renewable energy projects. Using data on thousands of permitting applications, I show that wind and solar projects can have highly heterogeneous impacts depending on their characteristics and location. In some cases this includes significant external local costs, and I conduct a hedonic analysis to quantify the impact on nearby property values. I then show that planning officials are particularly sensitive to these local costs, especially when wealthy residents are affected. This often comes at the expense of considering the wider social benefits of these projects. These biases in the permitting process create inefficiencies that increased costs and led to substantial underinvestment in renewable energy.

Item Type:	Article
Additional Information:	© 2025 The Association of Environmental and Resource Economists
Divisions:	Geography and Environment
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
JEL classification:	R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R52 - Land Use and Other Regulations 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 > Q58 - Government Policy
Date Deposited:	03 Oct 2024 14:36
Last Modified:	02 Jun 2025 10:24
URI:	http://eprints.lse.ac.uk/id/eprint/125611

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