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The Role of Ownership in Determining the Rural Economic Benefits of On‐shore Wind Farms
Author(s) -
Phimister Euan,
Roberts Deborah
Publication year - 2012
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2012.00336.x
Subject(s) - social accounting matrix , distribution (mathematics) , economics , computable general equilibrium , welfare , household income , investment (military) , shore , agricultural economics , rural area , asset (computer security) , business , labour economics , geography , market economy , macroeconomics , medicine , mathematical analysis , oceanography , mathematics , archaeology , pathology , politics , geology , political science , law , computer security , computer science
The development of the wind energy sector is often promoted as a means of supporting rural economies. This paper focuses on how the ownership structure of on‐shore wind power plants (external, farmer or community) affects the size and distribution of impacts within the rural part of a region. Empirical analysis is based on a regional computable general equilibrium model of North East Scotland with the results compared to those generated from a standard social accounting matrix multiplier analysis. With no local ownership, while rural GDP increases, there is almost no effect on household incomes due to the limited direct linkages of the on‐shore wind sector. Local ownership increases the household income benefits but there are still limited positive spill‐over effects on the wider economy unless factor income is re‐invested in local capital. With re‐investment, farm household ownership gives rise to the largest increase in total household income but community ownership gives rise to the largest increase in rural (non‐farm) household incomes and welfare. The results contribute to the on‐going debate about the opportunity cost of external asset ownership in rural areas.