Title:
The Economic Impact of Wood Pellet Production to the U.S. South
Author(s):
Henderson, J. E., Joshi, O., Hubbard, W. G.
Document(s):
Paper
Slide presentation
Abstract:
The ability to secure financing and local government support for construction of wood pellet facilities can be enhanced by articulating the economic benefits of these production facilities. This analysis explains how local economies can benefit from wood pellet manufacturing by expressing the economic multiplier effect of wood pellet plant construction and operation in terms of employment, wages and salaries, and value-added. The analysis reports multiplier values for a range of pellet plant production capacity sizes for each of the 13 states in the U.S. South region. Input-output analysis is used to estimate the economic impact of construction and annual operation of wood pellet plants by state. Using input-output analysis allows for an explanation of how local/regional investment in a wood pellet facility generates additional economic activity within a defined economy. Input-output analysis is conducted using IMPLAN software and 2012. The analysis examines the how the direct effect (e.g., plant operation expenditures and employment) generates additional indirect effects (e.g., purchases by supporting industries and their employees) and induced effects (e.g., household spending by direct and indirect employees) that result in a total effect or cumulative benefit to the local economy. This information can be used to communicate the wider benefit to an economy that results from the establishment of a wood pellet facility.
Keywords:
modelling, policy, promotion, policies, socio-economic impact
Topic:
Biomass Policies, Markets and Sustainability
Subtopic:
Market implementation, investments & financing
Event:
24th European Biomass Conference and Exhibition
Session:
4CO.2.2
Pages:
1345 - 1350
ISBN:
978-88-89407-165
Paper DOI:
10.5071/24thEUBCE2016-4CO.2.2
Price:
FREE
