Community Compensation in the Context of Wind Energy Project Developments: The use of community compensation and the role of bribery perceptions, involvement and reputation in predicting wind project acceptance.

This paper investigated the effectiveness of three compensation schemes (a mixed institutionalized, a fully institutionalized and a voluntary compensation scheme) in achieving project acceptance in the case of a wind energy project development. Here, bribery perceptions and perceived involvement of local residents were looked at as potential mediators. Furthermore, it was examined whether the trust reputation of the project developer influenced the effect of compensation schemes on project acceptance, as well as on the possible mediators. An experimental scenario study (N = 361) with a 3 (Institutionalization: Fully-institutionalized vs. mixed-institutionalized, vs. voluntary) x 2 (Reputation: Good vs. bad) factorial between-subjects design was conducted with project acceptance, perceived involvement and bribery perception as dependent variables. A mixed institutionalized compensation scheme was expected to lead to higher levels of project acceptance, irrespective of the project...Show moreThis paper investigated the effectiveness of three compensation schemes (a mixed institutionalized, a fully institutionalized and a voluntary compensation scheme) in achieving project acceptance in the case of a wind energy project development. Here, bribery perceptions and perceived involvement of local residents were looked at as potential mediators. Furthermore, it was examined whether the trust reputation of the project developer influenced the effect of compensation schemes on project acceptance, as well as on the possible mediators. An experimental scenario study (N = 361) with a 3 (Institutionalization: Fully-institutionalized vs. mixed-institutionalized, vs. voluntary) x 2 (Reputation: Good vs. bad) factorial between-subjects design was conducted with project acceptance, perceived involvement and bribery perception as dependent variables. A mixed institutionalized compensation scheme was expected to lead to higher levels of project acceptance, irrespective of the project developers’ trust reputation. Moreover, a fully institutionalized compensation scheme was expected to lead to more project acceptance than a voluntary compensation scheme in the case of a project developer with a bad reputation but not for one with a good reputation. The results provided limited evidence regarding the effectivity of the compensation schemes in achieving high project acceptance. Contrary to expectations, a voluntary scheme resulted in more project acceptance than a fully institutionalized scheme. This effect was explained by the voluntary scheme leading to more perceived involvement which in turn increased project acceptance. Additionally, the analyses showed that a good trust reputation results in higher project acceptance through reduced bribery perceptions and increased perceived involvement.Show less

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Community Compensation in the Context of Wind Energy Project Developments: The use of community compensation and the role of bribery perceptions, involvement and reputation in predicting wind project acceptance.