Economic and legal principles in renewable energy development policy - Solar, Wind and Land: Conflicts in Renewable Energy Development - page 9

why many national governments have sought to encourage renewables
through subsidies and other non-site-specific incentive programs.
The greatest variation in support for a particular renewable energy
project exists among those in the shaded middle circle in Figure 1.5 . This
middle circle tends to be populated by neighbors, environmental or wildlife
advocacy groups, and other parties other than a project's developer or
landowners. The parties in this middle circle generally do not receive direct
financial benefits if the project is completed, yet they perceive that the
project will significantly impact them or their interests.
Nearly all of the land use conlicts described in this topic involve the
external stakeholder parties represented by this shaded middle circle. The
success or failure of any proposed renewable energy project hinges in part
upon how well its developer and policymakers in the host jurisdiction
address the conflicts involving these individuals and entities. Whenever a
proposed renewable energy project's potential net benefits to those in the
innermost and outermost circles in Figure 1.5 would exceed its net costs to
those in the shaded middle circle, developing the project promotes the net
social welfare. Inefficiency results in these contexts whenever opposition
from those in the middle circle prevents such a net-welfare-maximizing
project from proceeding.
Of course, even this characterization of the costs and benefits involved
in renewable energy development is a bit oversimplified. Specifically, it fails
Figure 1.5 Typical distribution of support for a proposed renewable energy project