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Localized economic contributions of renewable wood-based biopower generation

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  • Dahal, Ram P.
  • Aguilar, Francisco X.
  • McGarvey, Ronald G.
  • Becker, Dennis
  • Abt, Karen L.

Abstract

We assessed the role of renewable wood-based biopower generation in supporting local economies by deriving multiplier effects from a sample of U.S. power plants representing 348.3 MW of installed capacity (1.2 million MWh of power generation for 2016) with annual expenditures of over US$117 million. Average annual employment, labor income, value-added, and gross output values associated with the generation of wood-based power were contrasted with those from power generated from coal and natural gas. Economic multiplier effects of localized operation and maintenance expenditures were derived following an input-output analysis. Results, expressed in 2017 US$, show the economic contribution of wood-based biopower was lower (US$123.96 per MWh) than power generated from coal (US$386.55 per MWh) and natural gas (US$989.79 per MW). However, wood-based biopower value-added localized multiplier effects were nearly 20% higher than coal-based power, at US$2.80 per dollar spent in operation and maintenance. Our findings suggest that, after considering sustainability thresholds for woody biomass availability, its expanded utilization could contribute between US$5.00 billion to US$22.00 billion in value-added to local economies across the U.S.

Suggested Citation

  • Dahal, Ram P. & Aguilar, Francisco X. & McGarvey, Ronald G. & Becker, Dennis & Abt, Karen L., 2020. "Localized economic contributions of renewable wood-based biopower generation," Energy Economics, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:eneeco:v:91:y:2020:i:c:s014098832030253x
    DOI: 10.1016/j.eneco.2020.104913
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    2. Keith L. Kline & Virginia H. Dale & Erin Rose & Bruce Tonn, 2021. "Effects of Production of Woody Pellets in the Southeastern United States on the Sustainable Development Goals," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    3. Mardones, Cristian, 2023. "Economic and environmental effects of financing subsidies for non-conventional renewable energies with a carbon tax – A comparison of intersectoral models," Renewable Energy, Elsevier, vol. 217(C).
    4. Khanal, Naresh & Pokharel, Raju & Poudel, Jagdish & Gc, Shivan & Shannon, Elliot & Huff, Emily & Finley, Andrew, 2024. "Analysis of location, feedstock availability, and economic impacts of potential mass timber processing facilities in Michigan," Forest Policy and Economics, Elsevier, vol. 163(C).
    5. Ashkan Mirzaee & Ronald G. McGarvey & Francisco X. Aguilar & Erin M. Schliep, 2023. "Impact of biopower generation on eastern US forests," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4087-4105, May.
    6. Chen, Shiu-Sheng & Lin, Tzu-Yu, 2024. "Monetary policy and renewable energy production," Energy Economics, Elsevier, vol. 132(C).
    7. Luo, Bin & Huang, Guohe & Li, Jianyong & Liu, Lirong & Zhai, Mengyu & Pan, Xiaojie & Zhao, Kai, 2022. "Sector-level socio-economic and environmental effects of large-scale hydropower initiatives -- a multi-region multi-phase model for the Wudongde Hydropower Station," Applied Energy, Elsevier, vol. 317(C).

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