Economic Impact Analysis of the Cape Wind Off-Shore Renewable Energy Project (Part 1b)
- Estimates the positive economic and fiscal impacts occurring in mainland cities and towns located in Barnstable County and in the Commonwealth of Massachusetts during the manufacturing/assembly (M/A), construction/installation (C/I) and operation phases of the Cape Wind Project.
- Estimates an increase in several sectors during the M/A and C/I phases, including:
- Direct, indirect, and induced full-time jobs, total state economic impact, value added, labor income, personal income tax revenues, property income, and corporate income tax revenues.
- Indicates that in the long run, there should be no appreciable increase in the demand for locally or state-provided government services.
- Estimates an increase in several sectors during the operation phase, including annual increases in:
- Jobs, state economic output, labor income, personal income tax revenues, corporate income tax revenues, and Barnstable and Yarmouth County property tax revenues.
- Estimates annual savings in wholesale power costs in New England, which would result in additional economic output and an increase in employment.
Citation: Economic Impact Analysis of the Cape Wind Off-Shore Renewable Energy Project (PDF 74 KB) Download Adobe Acrobat
Author(s): Prepared for: Cape Wind Associates; Prepared by: Global Insight
Report Date: April 2003
Project Size: n/a
Number of Turbines: n/a
Location: Horseshoe Shoal , MA
Geographic Scope: Barnstable County, MA
Turbine Ownership: n/a
Type of Study: Pre-project
Timeframe of Data: n/a
Model: IMPLAN input/output model for Massachusetts (used with year 2000 structural matrices)
Data Sources: Annual labor rates from Global Insight's Pricing and Purchasing Service;
Assumptions: Construction/Installation period assumed to be 27 months; "construction" jobs includes full time jobs in manufacturing, assembly, construction and installation; most of the direct M/A and C/I and operation impacts will be concentrated in Barnstable County; impacts are stated in 2002 dollars; 90% of O&M workers would be MA residents; scheduled reduction of MA personal income tax rate to 5% in 2003.
Special Considerations: State income taxes would increase moderately, based on the share of the O&M purchases made in MA and the extent to which project related expenditures would be subject to the sales and use tax since virtually all of the project is located outside state waters.
Developer Incentives: n/a
Lease Payments: see "Other Remuneration"
Other Remuneration: Project will produce annual savings in wholesale electric power costs in New England of $25 million ($7.5 million residential; $15 million commercial; $2.5 million industrial); other property income (including rent, dividends and interest, and corporate profits): $9.2 million - $14.8 million/year.
Conclusion: There will be a number of positive economic and fiscal impacts during the manufacturing/assembly and construction/installation phase of the project; these positive impacts will extend beyond the M/A and C/I phase. In the long run, there should be no appreciable increase in the demand for locally or state provided government services. Overall, the study forecasts that the operation and maintenance of Cape Wind Farm would have a positive effect on the economy of both Barnstable County and Massachusetts.