Indiana Counties See Economic Impact from Renewable Energy Restrictions

By Andi Anderson

A new policy brief from Ball State University’s Center for Business and Economic Research studies how restrictions on large wind and solar projects affect Indiana’s local economies.

The brief was released through the Indiana R-STEP Collaborative and is based on a wider research study covering counties across the state.

The research compares counties that placed limits on utility-scale renewable energy projects with those that did not. The findings show that counties with restrictions generally experienced weaker economic performance.

The differences were strongest in employment and gross domestic product, especially in manufacturing and related industries. Researchers explained that the results show consistent economic patterns but represent lower-bound estimates, meaning the real impact may be larger.

“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.”

The brief reports that counties with renewable energy limits saw a combined GDP loss of about $204 million. At the same time, nearby counties without restrictions recorded a gain of about $13 million.

The study also found a loss of 8,728 jobs, mainly in manufacturing and transportation and warehousing. These losses were partly offset by small employment gains in agriculture.

The policy brief also looked at changes in property values and public revenue. Counties with wind and solar restrictions showed slower growth in taxable property values and local government revenue. Over time, this may make it more difficult for counties to pay for services or maintain infrastructure without increasing taxes.

“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 was developed to support informed decision-making and is part of a U.S. Department of Energy program focused on renewable energy planning.

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