Local labor impact of wind energy investment: an analysis of Portuguese municipalities

Costa, Helia and Veiga, Linda (2019) Local labor impact of wind energy investment: an analysis of Portuguese municipalities. TSE Working Paper, n. 19-1023, Toulouse

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Investment in wind power has grown remarkably in the past decades in Portugal. Although
economic development is an argument for investment incentive policies, little evidence exists
as to their net impact on local-level unemployment. Using a panel of all 278 Portuguese
mainland municipalities for the years 1997-2017, we assess the existence, distribution and
duration of local level labor impacts of wind power investment. Our results show there are
short term effects during the construction phase. We estimate a decrease of 0.05 percentage
points in the total unemployment rate for each KW per capita installed. These effects are
confined to unskilled labor and male workers. Further analysis of spatial interaction finds
positive spatial spillovers for municipalities that are 30km or less away but not farther,
implying workers are willing to commute but not migrate. We find no evidence of sustained
effects or impact during the operations and maintenance phase, despite both short and long
term impacts in municipalities' revenues.

Item Type: Monograph (Working Paper)
Language: English
Date: July 2019
Place of Publication: Toulouse
Uncontrolled Keywords: Wind power, labor effectsf panel data
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 08 Jul 2019 13:51
Last Modified: 08 Jul 2019 13:51
OAI ID: oai:tse-fr.eu:123160
URI: http://publications.ut-capitole.fr/id/eprint/32602

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