Analysis of the main socio-economic impacts of wind energy in Europe

Abstract

The large increase in renewable energy sources (RES-E) penetration in the European Union (EU) has raised the concern of policy makers about the costs of public promotion of RES-E, in spite of the commitment of the European Commission to the deployment of RES-E in the last years. This paper is focused on wind energy, because it is the renewable technology with the highest contribution to electricity mix in Europe (excluding hydro). An economic analysis of wind energy contribution should not only take into account the policy costs of the deployment, which are finally paid by electricity consumers, but also its benefits, particularly those related to climate change mitigation and the reduction of fossil fuel dependence distributed among citizens. The aim of this paper is to fill this gap and evaluate the policy costs and the most relevant benefits of wind energy deployment in the EU28 (28 Member States) using 2013 data. For this purpose, an innovated methodology internationally validated has been used. The results show that the benefits considered are relevant and should be taken into account when support costs are assessed and in the future development of energy policies in Europe.