By Dr. Michael J. Hicks—
MUNCIE, IN— A new policy brief from Ball State University’s Center for Business and Economic Research (CBER) examines how county-level restrictions on utility-scale wind and solar development in Indiana are associated with employment, gross domestic product, and local public revenue.
Published through the Indiana R-STEP Collaborative, the brief summarizes findings from a broader empirical study of renewable energy restrictions across Indiana counties.
The brief reports that counties adopting restrictions on renewable energy development tended to experience weaker economic performance than counties without those restrictions, with differences most evident in employment and GDP and concentrated in manufacturing and related sectors. The authors describe these estimates as lower-bound effects, noting that the analysis identifies consistent patterns across multiple models and comparison groups but does not establish causality at the highest level of precision.
“This study adds data to an important local and statewide conversation,” said Dr. Michael Hicks, CBER director and George and Frances Ball Distinguished Professor of Economics at Ball State’s Miller College of Business. “Our findings suggest that counties with more restrictive wind and solar policies have, on average, experienced weaker employment growth and slower economic expansion than counties without those restrictions.”
Among the findings highlighted in the brief: counties with renewable energy restrictions experienced an aggregate net GDP loss of about $204 million, while adjacent counties saw a net gain of about $13 million. The study also found a net loss of 8,728 jobs, primarily in manufacturing and transportation/warehousing, partially offset by modest gains in agricultural employment. The brief states that the actual effects could be larger because the available data allow the authors to estimate only lower-bound impacts.
The policy brief also examines how these restrictions may affect local property values, public revenue, and a county’s ability to pay for services over time. According to the report, counties with wind and solar restrictions tended to show slower growth in property values used for taxation and in local public revenue over time—patterns that may make it harder for local governments to pay for services or maintain infrastructure without raising tax rates.
“Local officials are often weighing a range of community concerns when making land-use decisions,” said Dr. Dagney Faulk, CBER’s director of research and brief co-author. “This research is intended to help inform those discussions by examining how restrictive renewable energy policies are associated with economic and budget-related effects across Indiana.”
The brief, “Understanding the Economic Effects of Renewable Energy Restrictions: Evidence from Indiana, USA,” was produced by Ball State CBER for the Indiana R-STEP Collaborative, which connects local communities with research-based resources to support informed planning for utility-scale renewable energy projects. The initiative is part of the U.S. Department of Energy’s Renewable Energy Siting through Technical Engagement and Planning program.
Dr. Hicks will discuss the findings during an Indiana R-STEP webinar at 2 p.m. ET today, April 8. The webinar, hosted through Purdue Extension, is free and open to the public, though registration is required.
Since its inception in 1970, Ball State’s Center for Business and Economic Research has been a trusted source for high-quality, nonpartisan, data-focused research, analysis, and visualization.
For more information, visit the CBER website, call 765-285-5926, or email cber@bsu.edu.
About the Center for Business and Economic Research at Ball State University
Since its inception in 1970, the Center for Business and Economic Research (CBER) at Ball State University has been a trusted source for high-quality, nonpartisan, data-rich research, analysis, and visualization. Until October 2008, the Center was known as the Bureau of Business Research. CBER plays an active role in advocating for sustainable community growth through community-focused economic development and effective public policy.
Dr. Michael J. Hicks is Director, Center for Business and Economic Research, George and Frances Ball Distinguished Professor of Economics at Ball State University.
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