Ensaios em Economia da Energia

Abstract

This study examines the impact of wind farm installation on the economic development of municipalities in Northeast Brazil, utilizing municipal data from 2001 to 2020. We investigate the effect of wind farm installation on average formal income by sectors, tax revenue, and formal income inequality. We employ the doubly-robust differences-in-differences method proposed by Callaway and Sant'Anna (2021), with the robustness strategy adopting the Differences-in-Differences method proposed by de Chaisemartin and D’Haultfoeuille (2023). The results reveal significant effects on formal income, particularly in the agriculture, construction, and services sectors. Income inequality has also decreased. This study provides relevant insights for policymakers, emphasizing the transformative potential of wind energy in promoting regional economic development and reducing inequality. (ii) This study aims to identify the impact on the per capita Gross Domestic Product of João Câmara from 2012 to 2020, resulting from the implementation of wind parks. A panel dataset was constructed to achieve this objective, including information on GDP, GDP per capita, population, and the year of installation of the wind parks. The data covered all municipalities in Rio Grande do Norte from 2001 to 2020 and was obtained from the Brazilian Institute of Geography and Statistics (IBGE) and the National Electric Energy Agency (ANEEL). The synthetic control method was employed to achieve the objective. Robustness analyses were conducted through the placebo test and the Synthetic Differences in Differences method. The results, supported by the robustness analysis, indicate that installing wind parks in João Câmara resulted in a statistically significant increase of R$ 11,942.09 in GDP per capita.