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Does the presence of wind turbines have negative externalities for people in their surroundings? evidence from well-being data

Krekel, Christian and Zerrahn, Alexander (2017) Does the presence of wind turbines have negative externalities for people in their surroundings? evidence from well-being data. Journal of Environmental Economics and Management, 82. pp. 221-238. ISSN 0095-0696

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Identification Number: 10.1016/j.jeem.2016.11.009

Abstract

Throughout the world, governments foster the deployment of wind power to mitigate negative externalities of conventional electricity generation, notably {CO2} emissions. Wind turbines, however, are not free of externalities themselves, particularly interference with landscape aesthetics. We quantify these negative externalities using the life satisfaction approach. To this end, we combine household data from the German Socio-Economic Panel Study (SOEP) with a novel panel dataset on over 20,000 installations. Based on geographical coordinates and construction dates, we establish causality in a difference-in-differences design. Matching techniques drawing on exogenous weather data and geographical locations of residence ensure common trend behaviour. We show that the construction of wind turbines close to households exerts significant negative external effects on residential well-being, although they seem both spatially and temporally limited, being restricted to about 4,000 metres around households and decaying after five years at the latest. Robustness checks, including view shed analyses based on digital terrain models and placebo regressions, confirm our results.

Item Type: Article
Official URL: http://www.sciencedirect.com/science/journal/00950...
Additional Information: © 2016 Elsevier
Divisions: Centre for Economic Performance
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HM Sociology
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 21 Dec 2016 13:37
Last Modified: 20 Jan 2020 06:22
URI: http://eprints.lse.ac.uk/id/eprint/68708

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