Wind energy and local finances: a synthetic control approach to economic impact in the municipality of João Câmara/RN
DOI:
https://doi.org/10.33237/2236-255X.2024.5977Keywords:
Wind farms, GDP per capita, João Câmara, Synthetic control, Economic growthAbstract
In view of the scenario of expanding renewable energy production, academics and public and private entities have dedicated themselves to assessing the impact of the installation and use of these sources on the economy, both nationally (Simas, 2012; Rintzel, 2017; Martini, Jordão, & Grimaldi, 2018; Rodrigues; Gonçalves; Chagas, 2019; Rodrigues et al., 2019; Gonçalves; Rodrigues; Chagas, 2020) and internationally (Lantz, 2008; Reategui; Hendrickson, 2011; IRINA, 2016a, 2016b; ICF International, 2015; Böhringer et al., 2013; Inglesi-Lotz, 2016; Brown et al., 2012; De Silva et al., 2016). In this sense, this study aims to identify the impact on the Gross Domestic Product (GDP) per capita of the municipality of João Câmara during the period from 2012 to 2020, resulting from the implementation of wind farms. For this purpose, a panel database was constructed, including information on GDP, GDP per capita, population, and the year of installation. The data covers the period from 2001 to 2020, obtained from the Brazilian Institute of Geography and Statistics (IBGE) and the National Electric Energy Agency (ANEEL). The synthetic control method, proposed by Abadie and Gardeazabal (2003) and Abadie, Diamond, and Hainmueller (2010), was employed to achieve the objective. Robustness analyses were conducted through placebo testing and the synthetic Difference-in-Differences method. The results indicate that the installation of wind farms in João Câmara resulted in a statistically significant increase of R$ 11,942.09 in GDP per capita. That is, wind energy has the potential to drive economic growth in municipalities where it is implemented.
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