Support for renewable energy: The case of wind power

The rise of societal goals like climate change mitigation and energy security calls for rapid capacity growth in renewable electricity sources, yet citizens’ support is put to a test when such technologies emit negative local externalities. We estimate the impact of wind turbine deployment on granular measures of revealed preferences for renewable electricity in product and political markets. We address potentially endogenous siting of turbines with an IV design that exploits quasi-experimental variation in profitability induced by subsidies. We find that wind turbines significantly reduce citizens’ support locally, but this effect quickly fades with distance from the site. We assess policy instruments for enhancing citizens’ support for renewable energy in light of our results. • Contextual Challenge : While societal goals demand rapid expansion of renewable energy (e.g., wind power), local opposition arises due to negative externalities like noise pollution or visual disruption. • Empirical Approach : The study uses an instrumental variables (IV) strategy to address endogeneity in wind turbine siting, leveraging quasi-experimental variations from subsidy-driven profitability differences. • Key Finding : Wind turbine deployment reduces local support for renewable electricity, as observed in both consumer (product) and political markets. • Policy Implications : Results inform the design of policies aimed at boosting public acceptance of renewable energy, emphasizing the need for financial compensation for negative local externalities of wind turbines.