Wind power, industrial agglomeration, and employment structure in China

Driven by energy policies and environmental goals, China’s wind power sector has experienced rapid expansion over the past decade. Despite the anticipated socioeconomic impacts of wind power construction on local development, empirical evidence remains limited. Using data from the Global Wind Power Tracker, county-level statistics and business registration records from 2010 to 2021, we evaluate the effects of wind power construction on industrial agglomeration and employment structure. Our findings indicate that doubling wind power construction increases the industrial agglomeration level by 2.5% and decreases the agricultural employment share by 7.4%. Mechanism analysis reveals that the urban-rural income gap promotes industrial agglomeration and hinders employment restructuring. Furthermore, the advanced industrial structure unexpectedly mitigates the industrial agglomeration effect. Both effects exhibit regional variations; additionally, the industrial agglomeration effect varies by industry, while the employment structure effect shows a time lag. Notably, while wind power construction drives industrial agglomeration, it simultaneously stimulates technological innovation; while influencing the employment structure, it also prompts labour migration between urban and rural areas. This underscores the importance of considering synergies between the effects of renewable energy on economic development and labour dynamics in policy formulation.