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Willingness to invest in wind energy

By Nada Zdravkovic

Abstract

As wind energy companies grow beyond national borders, international development becomes essential to secure growth and prosperity. What usually gets overlooked is the potential that lies in local development, especially within smaller communities and by farmers. Large portions of territory in Sweden are owned by farmers and they are potentially representing investors or partakers in wind energy projects. Community investments and farmers invest in wind energy turbines has become a trend in Europe and is perceived as means of developing rural areas, by bringing about economical and societal benefits. This research project is focused on the investments in wind energy by farmers and communities by investigating their motivations and willingness to invest. The aim of this research is to assess the drives, obstacles and benefits to farmers who invested in wind energy in Sweden. Furthermore, it is intended to explore the impact of governmental incentives, in form of tradable green certificates (TGC), on farmer’s decisions to invest in wind energy. Interviews with Swedish farmers were assessed together within a theoretical framework consisting of the push-pull theory, sustainable business development and farm diversification concepts. The research showed that the main investment drivers can be seen in terms of economic benefits, weather and agricultural yield unpredictability, good wind conditions, energy security and over dependence on fossil fuels, and community building. Obstacles encountered by farmers were price variability, losses, time consuming legal and bureucratical procedures. Nevertheless, farmers received many benefits recognized mostly as economic benefits, diversification of farms and risks, social cohesion and community building, knowledge and contribution to a better and sustainable future. Tradable green certificates were shown to be a driving force, however, this force was more important to independent farmer’s invertments than to a farmer’s community investent

Topics: Economics and management
Year: 2013
OAI identifier: oai:stud.epsilon.slu.se:5242

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