Windfall revenues from windfarms: How do county governments respond to increases in the local tax base induced by wind energy installations?

Abstract

AbstractWe examine how county governments respond to plausibly random increases in the local tax base generated by wind energy installations using data on the universe of U.S. installations from 1995 through 2017. Wind energy installation led to large increases in county revenue and expenditures, with county governments using this revenue to prioritize spending on highways and hospitals. We also find that wind energy installation led to increases in county property values, suggesting that residents value the enhancements to local public services, property tax reductions, or other changes to local amenities that accompany wind energy installation.