Short-Run Response &
Long-Term Local Considerations
to Wind Energy Development
Richard S. Krannich, PhD
Utah State University
Richard.Krannich@usu.edu
http://www.nardep.info/
Rapid Growth in U.S. Wind Power
Continued Growth for the
Foreseeable Future
Projected:
Multiple Advantages of Wind Power
Low Environmental & Socioeconomic Impacts
It's a clean energy source: No air pollution or carbon emissions.
Wind turbines may allow for mixed land use: Can be built on
existing farms or ranches.
It can be economically competitive: Costs are increasingly
competitive with conventional power production options.
Reduced potential for localized boom-bust effects: Modest shortterm construction workforce requirements; small operational workforce.
Strong public support for wind power: In a 2013 Gallup poll, 71%
of respondents indicated that more emphasis should be placed on wind
energy.
BUT… Public Response to Renewable
Energy is Decidedly Mixed
•
A majority of individuals in the U.S. and Europe are supportive
of renewable energy.
•
HOWEVER… localized renewable development often initiates
debate and opposition… a “social gap” between general attitudes
and response to local developments.
•
Some residents see “opportunities”… whether in a general sense
(e.g., “clean energy” and “progress”) or in terms of specific local
benefits (jobs, lease payments, tax revenues, etc.).
•
Others see “liabilities”… often centered on aesthetics, but also
frequently about potential for negative impacts on property values
and on the environment.
Support for Wind Power is Highly Variable…
Both Within and Across Local Communities
Monticello,
Utah
(Under
construction)
Milford, Utah
(Installed)
Ammon, Iona,
E. Idaho Falls,
Idaho
(Installed)
Rawlins,
Wyoming
(Proposed)
Saratoga,
Wyoming
(Proposed)
Why the Social Gap?
A Number of Important Liabilities
•
•
•
•
•
Visual disruption
Impacts to birds & other wildlife
Habitat fragmentation
Fear of property value declines
Landscape change and disturbance of
socially-valued places & spaces
• Localized noise
• Loss of access to previously-accessible
public and private lands
• Impacts to host communities, but
benefits to other people & places
• Construction boom/bust effects
• Limited local employment benefits
• Uncertainties and inconsistencies in
revenues for local governments
• Opposition to government subsidies
Some Important Opportunities Can
Accompany Renewable Energy Projects
• Potential Income Source:
• Landowners who lease property for wind farm developments
typically receive payments of $2,000 to $10,000/tower per year,
or $2,000-$6,000/MW per year.
• But, who captures these benefits?
•
How many local landowners can receive such benefits?
•
Are leased lands locally owned, or do benefits go to absentee
landowners?
-- Often few participating landowners…meanwhile nonparticipants receive
few if any direct benefits, but do experience negative externalities.
• “Community wind” projects
•
Involve collective ownership and localized investment, and can
create more broad-based distribution of financial benefits.
Some Important Opportunities Can
Accompany Renewable Energy Projects
• Job creation and employment opportunities do
exist, though at modest levels:
• For Nebraska’s 10 operating utility-scale wind farms:
• 383 short-term construction-phase jobs for local area
workers (949 jobs total)
• 91 operations-phase jobs for local area workers (137 jobs
total)
• Promises and expectations about jobs are often
unmet… contributing to disappointment and
reduced support for further development.
Some Important Opportunities Can
Accompany Renewable Energy Projects
• Revenue generation for state and local government
• For example, Nebraska’s 10 operating utility-scale wind farms:
• $5,000,000 in annual local revenues from taxes on real property and on
turbines
• $281,000 (est.) in construction-phase sales taxes generated from
spending associated with construction wage and salary earnings.
• Unlike some other forms of energy production (e.g., major oil & gas
developments), wind projects create few public fiscal obligations due
to limited population growth, infrastructure & public service demands.
• However, highly varied nature of state property tax systems and
depreciation schedules for taxable capital equipment can limit
revenues, and may cause them to decline rapidly.
• In a few states, more stable longer-term local revenue effects from
distribution of a state-imposed wind energy production tax:
Minnesota: $1.20/MW hour; Wyoming $1.00/MW hour.
Tax Policies Have Large Implications on
Economic Impacts of Wind Developments
H
Source: Haggerty et al., 2014
People Generally Believe Renewable
Energy is a Good Idea…
But it must match local views that limits and controls should be
placed on its development, and that it may be inappropriate in some
locations.
Radar Ridge Wind
Project Southwest
Washington
“This decision is a major victory in the ongoing work to restore
critical habitat for Murrelets,” said Shawn Cantrell, Executive
Director of Seattle Audubon. “The key for any wind power project
is appropriate siting, and the Radar Ridge project was proposed in
absolutely the wrong location” (Durban, The Columbian 2011).
“The direct environmental harm caused by this proposed project,
including impacts to Marbled Murrelets, far outweigh the benefits
that it would provide in other areas such as reduced carbon output,”
Cantrell noted. “There are significantly better locations to site
renewable energy projects than Radar Ridge” (Durban, The
Columbian 2011)
Summary and Implications
Considerable variability in responses to largescale renewable energy development:
• A number of key liabilities that need to be acknowledged:
•
•
•
•
Visual impact concerns
Wildlife impact concerns
Property value concerns
Disturbance of socially-valued places and spaces
• Potential opportunities for rural people & communities:
• Income for some landowners
• Jobs and employment opportunities
• Local revenue generation
• Citizen perspectives on liabilities & opportunities are
important determinants of support or opposition to such projects
Summary and Implications
When attempting to anticipate local reactions to large-scale
renewable energy development, a mixed response is very likely
1. Framing developments as “clean and green” may encourage positive
response in some settings, while framing as “economic development”
may be more effective in other settings.
2. Concerns about “liabilities” such as visual impacts, wildlife
impacts, and property value impacts have important consequences,
but views about such issues will vary across development contexts.
3. Context does matter… some local communities tend to be enthusiastic
supporters under at least some development conditions, while others are
likely to exhibit broad-based opposition.
4. A “one size fits all” approach to siting efforts and communicating
about development plans does not work.
Summary and Implications
Some policy recommendations:
1. Establish and maintain consistent and predictable policies
affecting investment in utility-scale wind energy projects.
2. Promote coordinated planning at the federal, regional, state,
utility, and local levels.
3. Promote strategies that broaden the distribution of financial
incentives beyond a limited number of participating landowners.
4. Promote local-level revenue generation standards that enhance
longer-term opportunities and benefits.
5. Promote local job creation and hiring policies.
6. Promote ‘best practice’ siting standards to minimize visual
impacts, wildlife impacts, and other potential liabilities.
Thank You
• Questions?
References:
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