The role of ownership in determining the rural economic benefits of on-shore wind farms

The development of the wind energy sector is often promoted as means of supporting rural economies. This paper focuses on how the ownership structure of on-shore wind power plants (external, farmer or community) affects the size and distribution of impacts within the rural part of the region. Empirical analysis is based on a regional CGE model of North East Scotland with the results compared to those generated from a standard SAM multiplier analysis. With no local ownership, while rural GDP increases, there is almost no effect on household incomes due to the limited direct linkages of the on-shore wind sector. Local ownership increases the household income benefits but there are still limited positive spill-over effects on the wider economy unless factor income is re-invested in local capital. With re-investment, farm household ownership gives rise to the largest increase in total household income but community ownership gives rise to the largest increase in rural (non-farm) household incomes and welfare. The results contribute to the ongoing debate about the opportunity cost of external asset ownership in rural areas.