Document type

Working paper

Publication date

Publication license

cc-by-nc-nd, (c) Bühler et al., 2026
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/227613

Power to the People: The Local Economic Effects of Renewable Energy Communities in the UK

Journal Title

Director/Tutor

Journal ISSN

Volume Title

Related resource

Abstract

Local responses to renewable energy projects range from opposition that delays or blocks deployment to active support and participation. A common narrative underlying these behaviors emphasizes economic considerations: projects that impose local externalities without delivering local benefits tend to face resistance, whereas renewable energy communities (RECs) that are formed by citizens are argued to generate more local economic value than corporate plants. This paper examines these two related claims by comparing the local economic effects of community-owned and corporate-owned renewable energy plants. Using heterogeneity-robust difference-in-differences estimators and panel data for UK local authority districts, we estimate the income and employment impacts of community and corporate solar and wind projects. We find evidence of local economic benefits for some ownership–technology combinations, with substantial heterogeneity across ownership structures and technologies. Overall, the results point to a nuanced relationship between renewable energy deployment, ownership models, and local economic outcomes

Citation

Citation

BÜHLER, Joël and DILEK, Gokhan. Power to the People: The Local Economic Effects of Renewable Energy Communities in the UK. IREA – Working Papers. 2026. Vol.  IR26/04. [consulted: 12 of June of 2026]. Available at: https://hdl.handle.net/2445/227613

Export metadata

JSON - METS

Share record