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Efficient spatial distribution of wind power plants given environmental externalities due to turbines and grids

Kristine Grimsrud, Cathrine Hagem, Arne Lind and Henrik Lindhjem

Energy Economics, 2021, vol. 102, issue C

Abstract: Negative environmental externalities associated with wind power plants are due to the physical characteristics of turbine installations and associated power lines and the geographical siting. This paper presents an environmental taxation scheme for achieving efficient spatial distribution of new wind power production, taking account of both production and environmental costs. Further, the paper illustrates the impact of environmental taxation by means of a detailed numerical energy system model for Norway. The analyses show that a given target for wind power production can be achieved at a significantly lower social cost by implementing a tax scheme, compared to the current situation with no environmental taxes. The analyses also show that the environmental costs associated with both turbines and power lines were crucial to the efficient spatial allocation of wind power plants.

Keywords: Wind power; Wind power plant; Renewable energy; Environmental externalities; Environmental taxes; Energy system model (search for similar items in EconPapers)
JEL-codes: H23 Q42 Q48 Q51 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:102:y:2021:i:c:s014098832100373x

DOI: 10.1016/j.eneco.2021.105487

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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