BRAZILIAN WIND FARMS AND ITS IMPACTS IN THE LABOR MARKET OF THE MUNICIPALITIES IN NORTHEAST REGION

Thiago Pastorelli Rodrigues and André Chagas

No 2016_36, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: The debate about the wind power comes in the context of the discussions on climate change. Wind energy is renewable, clean, and low environmental impact. Moreover, in terms of economic development, the literature indicates that the implementation of wind power plants can be an important channel for local development by generating jobs and income in its neighborhood. Thus, this study aims to analyze the impact of the installation of wind farms in the municipalities of northeastern Brazil, region that concentrates approximately 80% of the installed capacity of this technology in the country. The analyzes are carried out for the year 2013 and the variables used are constructed from ANEEL, RAIS, IBGE and INPE databases. The methodology employed is the propensity score matching to estimate the average effect of treatment on the treated. Due to the spatial nature of the units observed, the existence of spatial dependence is considered in the estimation. The results suggest that the implementation of wind farms may raise wages in the construction, transportation and logistics sectors. Moreover, the presence of these plants may shift resources to the agricultural sector, stimulating the activity in the local economy

Keywords: wind energy; propensity score matching; spatial dependence; local development (search for similar items in EconPapers)
JEL-codes: C21 Q42 R58 (search for similar items in EconPapers)
Date: 2016-12-07
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