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BOULDER, Colorado, US, April 26, 2006 (Refocus
Weekly)
Compared with energy projects which rely on
fossil fuels, development of renewable energy facilities creates a
larger impact on the economy, according to an analysis prepared for
a U.S. energy laboratory.
Wind installations create a large direct impact on the economies
of rural communities, especially those with few supporting
industries, concludes the analysis, ‘Economic Impacts of Wind
Applications in Rural Communities’ prepared for the National
Renewable Energy Lab by M Pedden of Eugene, Oregon. The 54-page
report compiled studies on the economic impact of windfarms in rural
communities that had been produced between June 2004 and January
2005.
In communities in which farming is the only large industry,
installation of windfarms creates another industry that becomes a
large percentage of the local tax base and contributes to local
businesses, it explains. Small communities with few large industries
see greater leakage of revenue into nearby towns that provide more
services, and these small communities experience less indirect and
induced impact of a wind installation than a larger community with
the ability to provide a greater number of services.
Twenty-one studies were evaluated but only 13 are reflected because
the others lacked numerical data that could be assessed in a
spreadsheet. The assessment included the number of direct, indirect,
induced and total number of jobs created throughout the geographic
scope of the study by the wind turbines, and also examined jobs per
megawatt and construction jobs versus operations jobs.
The report also examined the direct, indirect, induced and total
income created by the turbines, taxes to local and state governments
as well as income, property and sales taxes, developer incentives
and lease payments to landowners based on confidential averages.
“All of the studies indicate that investment in wind power creates a
positive impact on rural economies in the form of an increase in
jobs, income and taxes,” it concludes, but it does note that the
broad cross-section of data makes it difficult to draw specific
conclusions about the positive impact of wind installations on local
and state economies.
The number of local construction and operations jobs created by a
wind energy facility depends on the skills available in the
community, and many developers try to hire local construction
companies and operators, the report explains. Development of green
power creates a larger economic impact than fossil fuel development
because the additional income earned by residents working in the
renewable energy industry “more than makes up for the cost increase
required to invest in renewable energy.”
The economic impact studies include the Cape Wind offshore windfarm
and a number of state-specific assessments produced by a range of
officials.
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