Template-Type: ReDIF-Paper 1.0
Title: The Economic Costs of NIMBYism - Evidence From Renewable Energy Projects
Author-Name: Stephen Jarvis
Author-Email: jarvis@uni-mannheim.de

Classification-JEL: Q42, Q51, Q53, R30
Keywords: Infrastructure, Electricity, Renewables, NIMBY, Local, Planning

Abstract: Large infrastructure projects can create widespread societal benefits, but also fre-
quently prompt strong local opposition. This is sometimes pejoratively labeled
NIMBY (Not In My Backyard) behavior. In this paper I estimate the economic
costs of NIMBYism and its role in local planning decisions. To do this I use de-
tailed data on all major renewable energy projects proposed in the United Kingdom
spanning three decades. First, I use hedonic methods to show that wind projects
impose significant negative local costs, while solar projects do not. I then show
that planning officials are particularly responsive to the local costs imposed within
their jurisdictions, but fail to account for variation in these costs across jurisdic-
tions. The result has been a systematic misallocation of investment, which may
have increased the cost of deploying wind power by 10-29%. Much of this can be
attributed to the fragmented and localized nature of the planning process.

Note: 
Length: 89
Creation-Date: 2021-06
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp300
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2021_300