Appropriate Methodology for Assessing the Economic Development Impacts of Wind Power
OAK-B135 Interest in wind power development is growing as a means of expanding local economies. Such development holds promise as a provider of short-term employment during facility construction and long-term employment from ongoing facility operation and maintenance. It may also support some expansion of the local economy through ripple effects resulting from initial increases in jobs and income. However, there is a need for a theoretically sound method for assessing the economic impacts of wind power development. These ripple effects stem from subsequent expenditures for goods and services made possible by first-round income from the development, and are expressed in terms of a multiplier. If the local economy offers a wide range of goods and services the resulting multiplier can be substantial--as much as three or four. If not, then much of the initial income will leave the local economy to buy goods and services from elsewhere. Loss of initial income to other locales is referred to as a leakage. Northwest Economic Associates (NEA), under contract to the National Wind Coordinating Committee (NWCC), investigated three case study areas in the United States where wind power projects were recently developed. The full report, ''Assessing the Economic Development Impacts of Wind Power,'' is available at NWCC's website http://www.nationalwind.org/. The methodology used for that study is summarized here in order to provide guidance for future studies of the economic impacts of other wind power developments. The methodology used in the NEA study was specifically designed for these particular case study areas; however, it can be generally applied to other areas. Significant differences in local economic conditions and the amount of goods and services that are purchased locally as opposed to imported from outside the will strongly influence results obtained. Listed below are some of the key tasks that interested parties should undertake to develop a reasonable picture of local economic impacts that may accrue from existing or future wind development.
- Research Organization:
- RESOLVE, Inc. (US)
- Sponsoring Organization:
- USDOE Office of Energy Efficiency and Renewable Energy (EE) (US)
- DOE Contract Number:
- FG03-00SF22100
- OSTI ID:
- 822427
- Report Number(s):
- 2C.1; TRN: US200414%%108
- Resource Relation:
- Other Information: PBD: 17 Dec 2003
- Country of Publication:
- United States
- Language:
- English
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