Wind Power and the Maine Economy
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Transcript of Wind Power and the Maine Economy
Wind Power and the Maine Economy
Charles S. ColganProfessor of Public Policy & Management
Muskie School of Public ServiceUniversity of Southern Maine
Impacts v. Benefits
• Impacts: Changes in the levels of economic activity in Maine• Employment• Economic Output• Wages
• Benefits• Reductions in price• Increases in reliability• Changes in environmental values
Trans CanadaKibby Project
132 MW
First Wind
Stetson I and II83 MW
First WindMars Hill42 MW
Projects Examined:
257 MW
Construction Period Expenditure Profile
200320042005200620072008200920100
10
20
30
40
50
60
70
80
90
100
Professional & Technical Services
Food & Lodging
Construction
TotalConstruction $197.82Food & Lodging $1.31
Professional & Technical Services $23.67Total $222.79
Employment Profile
0
100
200
300
400
500
600
Prof & Tech ServicesFood & LodgingConstruction
Employment in the Project Regions
2003
2004
2005
2006
2007
2008
2009
2010
0100200300400500600700800
Wesern MaineEastern MaineAroostook
WIDESPREAD IMPACTS
Excluded from the Impact Analysis
Eastport
Searsport
Offshore:Similar to Onshore with Marine
Component
Operating Period EMPLOYMENT
Routine Operations & Maintenance
~30 Direct15 IndirectTotal ~45
“Jobs”
• Jobs “created”• Construction
• “Full time”?
• Jobs “supported”• Professional & Technical• Restaurant & Lodging• Indirect Jobs
Taxes
• Taxes are transfers: they are neither costs nor benefits in determining the ultimate economic value of an investment
• Modest gains in state taxes• Property taxes of large energy
projects in small communities• Large increases in valuation
• Decreases in tax rates• Increases in local services
Costs and Benefits
•Costs:• Project expenditures in construction
and operating period• Reductions in wild land values
•Benefits• Price reductions• Reliability credits• Avoided environmental costs