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State and local economic impacts from wind energy projects: Texas case study

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  • Slattery, Michael C.
  • Lantz, Eric
  • Johnson, Becky L.

Abstract

This paper uses the Jobs and Economic Development Impacts (JEDI) model to estimate economic impacts from 1398MW of wind power development in four counties in west Texas. Project-specific impacts are estimated at the local level (i.e., within a 100-mile radius around the wind farms) and at the state level. The primary economic policy question addressed is how investment in wind energy affects the state and local communities where the wind farms are built. During the four-year construction phase approximately 4100 FTE (full time equivalents) jobs were supported with turbine and supply chain impacts accounting for 58% of all jobs generated. Total lifetime economic activity to the state from the projects equated to more than $1.8 billion, or $1.3 million per MW of installed capacity. The total economic activity to the local communities was also substantial, equating to nearly $730 million over the assumed 20-year life cycle of the farms, or $0.52 million per MW of installed capacity. Given the current level of impacts observed, and the potential for increased impacts via greater utilization of instate manufacturing capacity and the development of trained wind industry specific laborers, Texas appears to be well positioned to see increasing impacts from continued wind development.

Suggested Citation

  • Slattery, Michael C. & Lantz, Eric & Johnson, Becky L., 2011. "State and local economic impacts from wind energy projects: Texas case study," Energy Policy, Elsevier, vol. 39(12), pages 7930-7940.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:12:p:7930-7940
    DOI: 10.1016/j.enpol.2011.09.047
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    References listed on IDEAS

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    1. Lehr, Ulrike & Nitsch, Joachim & Kratzat, Marlene & Lutz, Christian & Edler, Dietmar, 2008. "Renewable energy and employment in Germany," Energy Policy, Elsevier, vol. 36(1), pages 108-117, January.
    2. Swofford, Jeffrey & Slattery, Michael, 2010. "Public attitudes of wind energy in Texas: Local communities in close proximity to wind farms and their effect on decision-making," Energy Policy, Elsevier, vol. 38(5), pages 2508-2519, May.
    3. Sims, Ralph E. H. & Rogner, Hans-Holger & Gregory, Ken, 2003. "Carbon emission and mitigation cost comparisons between fossil fuel, nuclear and renewable energy resources for electricity generation," Energy Policy, Elsevier, vol. 31(13), pages 1315-1326, October.
    4. de Vries, Bert J.M. & van Vuuren, Detlef P. & Hoogwijk, Monique M., 2007. "Renewable energy sources: Their global potential for the first-half of the 21st century at a global level: An integrated approach," Energy Policy, Elsevier, vol. 35(4), pages 2590-2610, April.
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    Keywords

    Wind energy; Texas; Economic impacts;

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