Economic Effects of Wind Power Plant Deployment on the Croatian Economy

Davor Mikulić, Željko Lovrinčević and Damira Keček
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Davor Mikulić: The Institute of Economics Zagreb, 10000 Zagreb, Croatia
Željko Lovrinčević: The Institute of Economics Zagreb, 10000 Zagreb, Croatia
Damira Keček: University Center Varaždin, University North, 42000 Varaždin, Croatia

Energies, 2018, vol. 11, issue 7, 1-20

Abstract: This paper tests the hypothesis that incentives for renewable energy sources contribute to economic development in Croatia. The aim of the paper is to quantify the total effects of wind power plant deployment on the Croatian economy in terms of employment and gross value. Indirect and induced effects are spread over the value added chain of producers of investment and intermediate goods and services required for wind power plant deployment and operation. The open input-output model is used for quantifying indirect effects. The closed input output model, which assumes endogenous personal consumption, is applied for quantifying total effects, which includes the effects of induced personal consumption. The gross value added and employment type I and type II multipliers related to wind power plants in Croatia were calculated separately for the investment and intermediate consumption channel. The results show positive indirect and induced effects relating to the deployment of wind power plants in Croatia. They are less pronounced in comparison to previous studies due to the undeveloped domestic production of equipment required for wind power plant deployment. Apart from the manufacturing sector, which produces equipment incorporated into wind power plants, the total effects were significant for construction, transport, and other supporting industries.

Keywords: wind power plants; input-output analysis; gross value added; employment; Croatia (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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