Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130611
Authors: 
Haan, Peter
Simmler, Martin
Year of Publication: 
2016
Series/Report no.: 
DIW Discussion Papers 1568
Abstract: 
In 2013, around 121 billion US-Dollar were spend worldwide to promote the investment into renewable energy sources. The most prominent support scheme employed is a feed-in tariff, which guarantees a fixed price for electricity produced by renewable energies sources, usually for around 15 years after the installation of the plant. We study the incidence of wind turbine subsidies, due to a feed-in tariff in Germany, into land prices to shed light on who benefits from the subsidies. In order to identify the incidence share we exploit quasi-experimental variation in wind strength across 270 non-urban counties combined with an institutional reform and use an Instrumental Variable estimator based on administrative transactionprices. We find that between 15 and 20% of expected wind turbine profits are capitalized into land prices. Using the estimated incidence share of 15%, we find that wind turbine subsidies account for roughly 4% of overall agricultural income of land owners in 2007.
Subjects: 
incidence
subsidy
renewable energy
wind turbines
land prices
JEL: 
H22
H23
H25
Q28
Q42
Document Type: 
Working Paper

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