The Cost of Wind: Negative Economic Effects of Global Wind Energy Development

John Dorrell,Keunjae Lee

doi:10.3390/en13143667

Abstract

This paper provides a structured literature review of the negative economic effects associated with the development of wind energy and synthesized the evidence at an abstract level. We then developed an analytical framework to systematically review economic issues such as volatility, electricity price, housing values, and unemployment in relation to wind energy. Global wind energy development data from the time period from 2000 through 2019 were included for a more robust analysis. This period encompasses the vast majority of total global installed wind energy capacity. After amalgamating evidence from existing studies and data banks, we discuss the policy implications, suggest avenues for future research, and propose solutions to mitigate externalities. By understanding the negative economic impact created by the expansion of wind energy, we can better equip policy makers and developers to create more efficient and sustainable energy policy to benefit citizens and preserve the environment for generations to come.

Highlights

Wind energy has grown rapidly since the turn of the century [1,2,3]
Intermittency means that the rate of energy produced by the wind turbines and delivered to market is not a constant
Wind energy is by nature an intermittent generation technology [61], and as wind farms have increased, so has the overall intermittency of electricity supply [62]

Summary

Introduction

Total global installed wind energy capacity has increased from 18 GW in 2000 to 590 GW by 2019 [4]. This growth in wind energy is primarily driven by the goal of combating climate change [5]. Despite this rapid increase, economic limitations remain a significant barrier to greater wind energy penetration [6,7,8]. We analyzed papers that were published between the years 2000 until 2020 as the vast majority of total installed wind energy capacity was developed during this time period [4]. Negative economic impacts can include increased electricity market volatility [16] and higher average energy production costs [17]

Methods

Results

Discussion

Conclusion