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Study shows regulations on renewables harm local economies

Solar panels in a grass field on a bright but cloudy day.
The study looked at how county-level restrictions on wind and solar facilities affect economic activity in Indiana.

A new study from Ball State University shows that county-level restrictions on industrial-level renewable energy negatively impact local economies.

The study is the first of its kind to look at the economic impacts of renewable energy regulations on local economies.

The study found that Indiana counties with renewable energy restrictions experienced a net GDP loss of about $204 million, while adjacent counties without restrictions saw a net gain of about $13 million.

Michael Hicks is the director of the Center for Business and Economic Research at Ball State University, and one of the lead authors of the study. He said that a lot of that economic impact can be credited to renewable energy pledges from companies in the manufacturing, utilities, information sector, logistics and agriculture sectors.

“Companies, if they're going to expand, say ‘I want to go to a place that has wind or solar access,’” Hicks said. “So if you're in a county that says we're not going to give you wind or solar access, most companies are not going to relocate there.”

Regulations on renewable energy sources can range from restrictions on how far back from roads facilities can be located, to complete moratoriums on wind turbines in certain counties.

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