Economic potential of the energy transition: A regionalized input-output analysis of wind power in Lower Saxony, Germany

Abstract

Wind power is crucial for the energy transition, but regional impacts are still underexplored. This study analyzes the impact of regional datasets for examining the economic footprint and multipliers of regional wind power, differentiating between technology type and lifetime phase. Additionally, the economic and environmental impacts of wind power expansion are evaluated. Lower Saxony, a pioneering wind power region in Northern Germany, is used as a case study. The methodological approach involves constructing a regional input-output table, integrating wind power sectors and developing scenarios consistent with policy objectives. Results reveal the significant economic footprint of wind power in Lower Saxony and emphasize the importance of detailed regional datasets. Onshore wind key component manufacturing and offshore wind installation generate the highest economic multipliers. Offshore wind has greater economic impacts per unit of electricity than onshore wind. Wind power expansion can create substantial gross economic gains, but outcomes strongly depend on regional supply chain integration. Net effects include job losses and substantial reductions in emissions and water use. Policy implications comprise strengthening upstream industries, coping with labor market dynamics, and enhancing regionalized data collection. The study highlights the need for spatially focused approaches to capture the regional dimension of the energy transition.