De Silva, Dakshina G. and McComb, Robert P. and Schiller, Anita R. (2011): Do production subsidies have a wage incidence in wind power?
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Employment in electricity generation from renewable resources has expanded rapidly in the US and in Texas during the last decade. Availability of the Production Tax Credit has been an important driver of this growth. Using establishment-level employment and payroll data for Texas at the NAICS-6 level, we analyze the differences in average wages between firms generating electricity from fossil fuels and those generating electricity from wind power. We compare relative average wages before and after the rapid expansion of wind power development that followed the ex ante renewal of the Production Tax Credit (PTC) in 2006. Our main finding using both parametric and the nonparametric estimation technique proposed by Racine and Li (2004), is that average payrolls for wind power generators increased relative to fossil fuel-based electricity generators after 2006.
|Item Type:||MPRA Paper|
|Original Title:||Do production subsidies have a wage incidence in wind power?|
|Keywords:||Wages, Production Tax Credits, Wind energy, Clean Energy|
|Subjects:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q28 - Government Policy
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q20 - General
|Depositing User:||Dakshina De Silva|
|Date Deposited:||14. Oct 2012 14:42|
|Last Modified:||11. Feb 2013 12:57|
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Do production subsidies have a wage incidence in wind power? (deposited 04. Oct 2011 04:26)
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