The Economic Impact of Wind Power Development

Wind power is the fastest growing renewable energy source in the United States. Existing empirical studies on the economic impact of wind power development have primarily relied on case studies and input-output models, which have limitations. This study instead uses a linear fixed effects model to estimate the county level effects of wind power in the Great Plains region of the United States from 2005 to 2012. This study finds a significant positive correlation between installed wind capacity and per capita personal income and median household income. The correlation between wind power and employment per capita is statistically significant and positive in some models. The spillover effects into other industries are investigated by evaluating the change in employment in the sectors of construction, manufacturing, retail, services, and utilities. The three industry employment models generally find a positive correlation between installed wind capacity and employment in construction, retail, and utilities, and a negative correlation with employment in services.