by Karianna Klassen

Abstract

Iowa is a national leader in wind energy, producing nearly two-thirds of its electricity from wind turbines. However, the development of wind energy infrastructure across the state has been uneven—some counties host hundreds of turbines while others have none. This paper investigates whether county-level economic conditions influence the likelihood of wind turbine development. Using panel data from 1990 to 2023 and a two-way fixed effects regression framework, I examine the relationship between wind energy development and three economic indicators: farm income per capita, non-farm income per capita, and unemployment rate. I control for political affiliation, farming success, prior turbine presence, land availability, and demographic variables. Contrary to existing qualitative literature that suggests economic need drives local acceptance of wind projects, my analysis finds that these economic indicators are not statistically significant predictors of turbine development. One exception is political affiliation, which in some regressions indicates that a higher share of Democratic votes is associated with a lower probability of turbine development—contradicting national-level trends linking Democratic support with renewable energy expansion. All models have low between-county explanatory power (R² < 0.05), suggesting that factors not captured in county-level economic data—such as individual landowner decisions, developer strategies, or transmission infrastructure—may better explain wind energy siting patterns. These findings call for deeper investigation into localized, non-economic factors that shape renewable energy development, particularly as the push toward decarbonization accelerates.

Professor Jeffrey DeSimone, Faculty Advisor
Professor Michelle Connolly, Faculty Advisor

JEL Codes: O13, R11, Q42,

Keywords: Wind Energy, Renewable Development, Agriculture

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