Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305525 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11283
Publisher: 
CESifo GmbH, Munich
Abstract: 
Wind farm development, despite offering global benefits, often encounters local opposition fostered by local negative externalities and uncertain benefits. This study investigates the financial impact of wind farm development on host municipalities using Spanish municipality-level budget data from 1994 to 2022. Results from two-way fixed effect difference-in-difference and event study models show an average 45 percent increase in municipal revenue per capita, funding real investments and current expenditures. This revenue increase, driven by a tax base expansion, is complemented by a rise in capital income and local tax responses in the form of higher tax rates associated with this infrastructure.
Subjects: 
energy transition
local public finance
wind power
JEL: 
H20
R10
Q40
Document Type: 
Working Paper
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