Economic Development Impacts of Wind Power--Case Studies Fact Sheet

Abstract

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 (O&M). It may also add to the supply of electric power in the area and support some expansion of the local economy through ripple effects resulting from initial increases in jobs and income. 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. While there is a growing body of information about the local impacts of wind power, the economic impacts from existing wind power developments have not been thoroughly and consistently analyzed. Northwest Economic Associates, under contract to the National Wind Coordinating Committee (NWCC), conducted a study and produced a report entitled ''Assessing the Economic Development Impacts of Wind Power.'' The primary objective of the study was to provide examples of appropriate analyses and documentation of economic impacts from wind power development, using case studies of three existing projects in the United States. The findings from the case studies are summarized here; more detail is available in the report, available at NWCC's website http://www.nationalwind.org/. It should be noted that specific results presented apply only to the respective locales studied and are not meant to be representative of wind power in general. However, qualitative findings, discussed below, are likely to be replicated in most areas where wind development occurs.