The Effects of Renewable Energy Projects on Employment: Evidence from Brazil

This study examines the employment impacts of wind energy projects in Brazil. Between 2006 and 2017, Brazil’s wind power capacity grew from 0.23 GW to 12.4 GW. Using detailed employment information on the universe of formal workers in Brazil, we analyze how the development of wind energy projects impacts local economies. We find that when new wind energy projects come online, the number of firms in a municipality increases between 0.068 and 0.135 log points, and total employment in a municipality increases between 0.074 and 0.147 log points, depending on the estimator. Employment gains are higher in occupations related to electricity, construction, and transportation and are driven by relatively younger workers. The employment increases appear to stem from growth of existing firms and increased entry of new firms. Our results are not fully explained by electrification expansions.

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Publication Details

Journal
Journal of the Association of Environmental and Resource Economists
Published
2025-03-19
DOI
https://doi.org/10.1086/735825
Primary Topic
Energy, Environment, Economic Growth
Type
article
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article

The Effects of Renewable Energy Projects on Employment: Evidence from Brazil

Danae Hernández-Cortés, Sophie Mathes
Journal of the Association of Environmental and Resource Economists
Energy, Environment, Economic Growth
article

The Effects of Renewable Energy Projects on Employment: Evidence from Brazil

Danae Hernández-Cortés, Sophie Mathes
article en

Abstract

This study examines the employment impacts of wind energy projects in Brazil. Between 2006 and 2017, Brazil’s wind power capacity grew from 0.23 GW to 12.4 GW. Using detailed employment information on the universe of formal workers in Brazil, we analyze how the development of wind energy projects impacts local economies. We find that when new wind energy projects come online, the number of firms in a municipality increases between 0.068 and 0.135 log points, and total employment in a municipality increases between 0.074 and 0.147 log points, depending on the estimator. Employment gains are higher in occupations related to electricity, construction, and transportation and are driven by relatively younger workers. The employment increases appear to stem from growth of existing firms and increased entry of new firms. Our results are not fully explained by electrification expansions.

Journal of the Association of Environmental and Resource EconomistsVol. 12(6)
Affordable and clean energy
Openalex Percentile: Top 92%
Energy, Environment, Economic Growth
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