Abstract
Alabama imports coal from other states to generate electricity. This paper assessed the direct and indirect economic impacts of wood pellet production to be co-fired with coal for power generation in Alabama. Four sizes of wood pellet plants and regional input-output models were used for the analysis. The results showed that the economic impact increases with the size of the plant. Wood pellet production will have a multiplier effect on the economy especially, forest-related services, retail stores, the health service industry, and tax revenue for the government. Domestic wood pellet production can reduce the use of imported coal, allow the use of local woody biomass, and create economic activities in Alabama’s rural communities. Policies that support the production of wood pellet will serve to encourage the use of wood for power generation and support the rural economies.
Highlights
Renewable energy is widely recognized as a substitute for fossil fuels that can reduce the United States’ dependence on foreign petroleum and enhance the domestic economy [1]
Woody biomass is a major resource that could be used as a substitute for coal ingenerating electricity in Alabama
The present study estimated the socioeconomic impacts of small-scale wood pellet plants for co-firing in power generating plants in the south and west regions of Alabama
Summary
Renewable energy is widely recognized as a substitute for fossil fuels that can reduce the United States’ dependence on foreign petroleum and enhance the domestic economy [1]. Emphasis has been on producing biofuels from field crops such as corn, sorghum, and oilseeds. Regulations grouped under the Renewable Portfolio Standard (RPS) are designed to increase the production of energy from renewable energy sources. The policy, a result of legislation passed in 1978 under the umbrella of the Public Utility Regulatory Policies Act, mandated increased energy production from renewable resources. The regulations introduced guidelines that a minimum percentage of electricity supply tobe produced from renewable energy sources. Producers with a certified renewable energy generator earn certifi-
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