Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249128 
Year of Publication: 
2020
Series/Report no.: 
Discussion Papers No. 938
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
Negative environmental externalities associated with wind power plants depend on the physical characteristics of turbine installations and associated power lines and the geographical siting. We derive analytically an environmental taxation scheme for achieving the efficient spatial distribution of new wind power production, taking account of both production and environmental costs. Further, we illustrate the analytical results by means of a detailed numerical energy system model for Norway. We show that a given target for wind power production can be achieved at a significantly lower social cost by implementing a tax scheme, compared to the current situation with no environmental taxes. We also show that the environmental costs associated with both turbines and power lines were crucial to the efficient spatial allocation of wind power plants.
Subjects: 
Wind power
wind power plant
renewable energy
environmental externalities
environmental taxes
energy system model
JEL: 
H23
Q42
Q48
Q51
Document Type: 
Working Paper

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