This paper has investigated the location of Italian thermoelectric power plants in order to better understand the strengths and weaknesses of market-based siting in energy sectors. An empirical analysis has examined 91 green-field investment projects during the 1999-2006 period. When selecting the site, developers take into account traditional location determinants (for instance, profitability of local power markets). At the same time, they evaluate siting costs, which among other things depend from the local community’s potential for collective action and opposition (e.g. compensation demand, delays in investment timeline due to lobbying and litigations). We have found that other things being equal, local capabilities to organize opposition have a greater impact on location likelihood than concentrated environmental damages. This raises some concerns about the efficiency of market-based siting for energy facilities.
Locally-unwanted Investiments and Voice Effects in Power Generation. An Empirical Analysis
GARRONE, PAOLA MARIA;
2009-01-01
Abstract
This paper has investigated the location of Italian thermoelectric power plants in order to better understand the strengths and weaknesses of market-based siting in energy sectors. An empirical analysis has examined 91 green-field investment projects during the 1999-2006 period. When selecting the site, developers take into account traditional location determinants (for instance, profitability of local power markets). At the same time, they evaluate siting costs, which among other things depend from the local community’s potential for collective action and opposition (e.g. compensation demand, delays in investment timeline due to lobbying and litigations). We have found that other things being equal, local capabilities to organize opposition have a greater impact on location likelihood than concentrated environmental damages. This raises some concerns about the efficiency of market-based siting for energy facilities.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
