The Effects of Renewable Energy Projects on Employment: Evidence from Brazil

Danae Hernandez-Cortes and Sophie M. Mathes

Journal of the Association of Environmental and Resource Economists, 2025, vol. 12, issue 6, 1791 - 1817

Abstract: This study examines the employment impacts of wind energy projects in Brazil. Between 2006 and 2017, Brazil’s wind power capacity grew from 0.23 GW to 12.4 GW. Using detailed employment information on the universe of formal workers in Brazil, we analyze how the development of wind energy projects impacts local economies. We find that when new wind energy projects come online, the number of firms in a municipality increases between 0.068 and 0.135 log points, and total employment in a municipality increases between 0.074 and 0.147 log points, depending on the estimator. Employment gains are higher in occupations related to electricity, construction, and transportation and are driven by relatively younger workers. The employment increases appear to stem from growth of existing firms and increased entry of new firms. Our results are not fully explained by electrification expansions.

Date: 2025
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