Socioeconomic Impacts of Renewable Energy Plants Through the Lens of the Triple Bottom Line

Abstract

Investing in renewable energy is a key driver for achieving the objectives outlined in the 2015 Paris Agreement. In this context, Brazil has stood out, and this study investigates the socioeconomic impacts of different types of renewable energy projects across Brazilian municipalities. The analysis focuses on projects installed after 2010, from which investments in non-conventional sources have grown substantially in the country. The applied methodology combines Propensity Score Matching and Difference-in-Differences techniques to analyze the average impacts and source-specific effects of hydro, wind, and photovoltaic solar projects on GDP per capita and formal employment. The results indicate an average positive effect of 16.8% on GDP per capita, with wind power having the greatest impact, and 6.7% on formal employment, where hydropower stands out. Therefore, this work provides valuable insights for policymakers and companies, who can use the findings to make decisions and direct investments based on the various dimensions of the Triple Bottom Line.