Qualitative meta-analysis of the socioeconomic impacts of offshore wind farms

Abstract

Climate change and an increased interest in renewable energy have resulted in a burgeoning wind energy sector. However, in the recent past, wind farms have faced resistance in acquiring permits due to concerns about their long-term effects on the local community. To understand the extent of these externalities, this study qualitatively meta-analyses four socio-economic impacts of interest, namely: house prices, tourism, catalytic effects of supply chain clustering, and social change. Geographically, the analysed reports include Europe, Canada and the US, and deductions are made for the EU. In order to bridge the gap of unavailability of primary data on the wind sector, relevant conclusions are drawn from other comparable sectors. Based on a rigorous review of primary qualitative research, this study concludes that offshore wind farms should be located more than 40 km away from the coast to eliminate risks of housing price devaluation and tourist activity reduction, which would directly affect the economic value of the region. In addition, the study found limited evidence to acknowledge the employment benefits in the local economy and social change in the community due to offshore wind farms. Monitoring mechanisms should be set up to prove or disprove the creation of local employment, crime and substance abuse. Furthermore, the study finds that adequate planning and management can ensure better socioeconomic outcomes in the community. Further research is recommended for the specific impact of overhead transmission lines and substations on property values and tourism.

The local socio-economic impacts of offshore wind farms

“…In conclusion, the research also illustrates the importance of monitoring of actual socioeconomic impacts. As noted by Alem et al 2020, this is a weak area in OWF EIAs and ESs. Lack of effective monitoring can mask the differences between predicted and actual impacts.…”

“…Yet, for OWFs, there can be scepticism about the importance of socio-economic impacts on host communities, especially when the OWF may be many kilometres off the coast (Haggett, 2008(Haggett, , 2011Alem et al 2020). For some observers, such OWFs are 'out of sight, out of mind', and any impacts may be 'gone with the wind'.…”

“…Findings from the academic and industry literature review highlight some of the opportunities and challenges emerging on the assessment of the socio-economic impacts of OWFs. Alem et al (2020) in their meta-analysis of literature on socio-economic impacts of OWFs found limited evidence to acknowledge the employment benefits in the local economy and social change in the community due to projects. They also note the importance of setting up monitoring mechanisms to provide evidence on actual impacts.…”

“…The key to effective I-O analysis is the currency and level of disaggregation of the underpinning tables. Unless an up-to-date I-O table exists for the host area under study, start-up costs may be too great, with recourse to adaptation from national and regional tables (Alem 2020). Partly in response, there are some hybrid and "bottom-up" approaches, making good use of the actual details of the project and the host economy (BVG/UHI 2017).…”

“…However, even in such cases there is normally little depth with respect to specific issues; for example impacts of projects on cost of housing, community wellbeing (noise, increased vehicular movements, diversions etc), and community cohesion (Chadwick and Glasson, 2017). Yet there may be local community concern about potential housing price devaluation associated with visible projects (Alem et al 2020). Overall, there appears to be a general assumption by developers and their consultants, across small and large, and older and recent projects, that social impacts are not important.…”