Localized economic contributions of renewable wood-based biopower generation

Ram P. Dahal, Francisco Aguilar, Ronald G. McGarvey, Dennis Becker and Karen L. Abt

Energy Economics, 2020, vol. 91, issue C

Abstract: We assessed the role of renewable wood-based biopower generation in supporting local economies by deriving multiplier effects from a sample of U.S. power plants representing 348.3 MW of installed capacity (1.2 million MWh of power generation for 2016) with annual expenditures of over US$117 million. Average annual employment, labor income, value-added, and gross output values associated with the generation of wood-based power were contrasted with those from power generated from coal and natural gas. Economic multiplier effects of localized operation and maintenance expenditures were derived following an input-output analysis. Results, expressed in 2017 US$, show the economic contribution of wood-based biopower was lower (US$123.96 per MWh) than power generated from coal (US$386.55 per MWh) and natural gas (US$989.79 per MW). However, wood-based biopower value-added localized multiplier effects were nearly 20% higher than coal-based power, at US$2.80 per dollar spent in operation and maintenance. Our findings suggest that, after considering sustainability thresholds for woody biomass availability, its expanded utilization could contribute between US$5.00 billion to US$22.00 billion in value-added to local economies across the U.S.

Keywords: Biopower; IMPLAN; Economic contributions; Economic multipliers; Net annual woody biomass increase (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:91:y:2020:i:c:s014098832030253x

DOI: 10.1016/j.eneco.2020.104913

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