T.F. Green Airport Improvement Program - FEIS Chapters - PVD

T.F. Green Airport Improvement ProgramEnvironmental Impact Statement and Final Section 4(f) Evaluationpassengers, and off-Airport due to an increase in spending in Warwick and Rhode Island from visitors arrivingon the additional flights. This change in the destinations that could be reached directly from the Airport couldoffer opportunities for spillover business activities near the Airport to take advantage of the new service andcustomers. In the aviation activity impact assessment, direct impacts, as well as secondary impacts, are brokenout in three categories: on-Airport in Warwick; off-Airport in Warwick; and statewide in Rhode Island,including Warwick. Off- and on-Airport impacts based on aviation activity are limited to the additionaloperations and passengers forecast due to Alternatives B2 and B4 and do not include current airport activity orforecast activity of current conditions.Economic Direct and Indirect Impacts MethodologyThe impact assessment includes a detailed analysis of direct and indirect impacts on the local and regionaleconomies from Alternatives B2 and B4, including affected businesses and changes in employment as well aschanges to city and state tax revenues, and municipal services. Refer to Appendix G.1, Social and SocioeconomicImpacts Methodology, for further information on the methodology for the economic impact analyses.Direct and Indirect Impact Assessment for Affected Businesses and Employment MethodologyDirect impacts include economic activities associated with Alternatives B2 and B4 such as commercial landacquisitions with existing businesses that would be displaced. Parcel data from the City of Warwick Assessor’sDepartment were used to identify the commercial properties that would be affected by displacements. Thenumber of commercial land acquisitions, including the type, value and number of jobs of existing businesseswere identified for Alternatives B2 and B4. Direct impacts also include changes in employment, and state andlocal taxes due to increases in Airport operations and passengers.Indirect, or secondary and induced impacts (often referred to as multiplier effects or ripple effects) are based onexpected direct impacts. Indirect impacts are changes in business to business sales and induced impacts arechanges in consumer purchases supported by the additional workers’ income (or reduction of income) thatcome from direct impacts to the economy. Examples of indirect impacts include changes to orders for foodproducts for airport restaurants, merchandise to be sold by airport stores, goods to be sold by companiesserving visitors off-Airport, and accounting and legal services engaged by these establishments. These sales alsosupport jobs and wages of workers in businesses that serve consumers.Indirect economic impacts were derived from “input/output accounts” (I/O) maintained by the Bureau ofEconomic Analysis (BEA, U.S. Department of Commerce). The I/O accounts are a time series of detailed,consistent information on the flows of goods and services, linking the economic transactions of businesses withsuppliers. I/O accounts can be used to study the relative importance of an industry to all other industries and toestimate changes in regional economies. The accounts are an important tool for analysis because they show theproduction functions of individual industries and the interactions among producers and between producersand final users in the economy.Indirect economic impacts in this assessment are based on specific economic activities anticipated fromimplementing a Build Alternative, including displacement of businesses due to construction, or increases inon-Airport activity, off airport visitor spending and other off airport jobs. Potential displacement of businessesChapter 5 - Environmental Consequences 5-79 July 2011\\mawatr\ev\09228.00\reports\FEIS_Final_July_2011\PVD_CH05_Environmental_Cons_JUL_2011.doc