The economic costs of NIMBYism: evidence from renewable energy projects
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
Large infrastructure projects can have important social benefits, but also prompt strong local opposition. This is often attributed to NIMBY (Not In My Backyard) attitudes. I study the economic costs of NIMBYism and local planning restrictions by looking at renewable energy projects. Using hedonic methods I find that wind projects can impose significant external local costs, while solar projects do not. I then show that planning officials are particularly sensitive to local costs in their area. The resulting misallocation of investment may have increased wind power deployment costs by 10-29%. I conclude by examining compensation payments as a policy solution.
JEL-codes: Q31 Q42 Q51 R11 (search for similar items in EconPapers)
Pages: 93 pages
New Economics Papers: this item is included in nep-ene, nep-env, nep-ppm, nep-reg and nep-ure
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Working Paper: The Economic Costs of NIMBYism - Evidence From Renewable Energy Projects (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:113653
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