Nevada Dividends!

State And Regional Economic Impacts Of Clean Energy Construction And Operation


Issue:

With increasing fuel prices and the desire for energy independence, clean or green energy as an energy source has become a target for national and regional economic development. However deriving the costs of these new clean energy sources and technologies and accompanying economic impacts have been somewhat ignored. There are national models such as JEDI which researchers can use. However, the JEDI model is limited and has not been used for all sources of clean energy. For Nevada the JEDI model is quite limited and does not cover biomass, geothermal, micro-hydropower, wind, and solar sources.

What has been done?

The JEDI model, as well as products developed by Orr, Johnson, and Badger (2004), Johnson (2004), and Agricultural and Food Policy (2011) were reviewed in order to determine their applicability in developing clean energy budgets. Cost budgets for constructing clean energy projects were formulated and budgets developed. Using input-output models, total economic, employment, and household income impacts were determined from clean energy operations. Also, construction costs of these clean energy projects were developed to estimate construction impacts. Finally, two models were developed for clean energy impact analysis, the stochastic financial simulation model and an inter-industry/occupational-industry model. Feasibility analysis was completed for five hypothetical alternative energy projects.

Results:

With the completion of the stochastic financial simulation model, the NAES sponsored Center for Economic Development has made the model available for outside economists. Working with Western Regional Development Center, the team has set up a regional meeting on clean energy. The Nevada Solar Nexus Project Meeting was held that discussed the stochastic financial simulation model for clean energy that was developed for this project.

CONTACT INFORMATION

Thomas Harris

Department of Economics

1664 North Virginia Street

Reno, Nevada   89557

 

Phone: (775) 784-1681

Email: harris@unr.edu

Personal Web Site: http://www.unr.edu/business/research-and-outreach/uced