15 MB - Great Lakes Maritime Research Institute

When operations for the biodiesel plant reach typical year capacity, it is estimated togenerate $48.4 million in direct spending across the Great Lake states. The indirectspending adds $22.5 million and $8.1 million (in induced spending). The total $79million in new expenditures occurs annually for the life of the facility. During a typicalyear of operations, Great Lakes Biodiesel Plant will create over 194 full­time, part­time,and temporary jobs by directly employing nearly 37 people.Special Considerations. Special considerations for interpreting these impact numbers:Regional indirect and induced effects are driven by assumptions in the model. Oneproblem is that the assumptions can mask the true multiplier. This is especially true of theassumption of constant returns to scale: This assumption most affects induced effects andsays that if I drink coffee, and my income increases, I will drink proportionally more thanbefore. The amount of weight placed on the induced effects (the percentage of the totalinduced effect you would want to use) can be further analyzed with an in­depth impactstudy, involving much more specific data collection and more detailed analysis.Construction costs may be larger due to commodity prices, banker’s fees, and interestpayments. Any differences would affect the estimates given here.Readers are also encouraged to remember the BBER was asked to supply an economicimpact analysis only. Any subsequent policy recommendations should be based on the“big picture” of total impact. A cost benefit analysis would be needed to assess theenvironmental, social, and governmental impacts.4.4 Impact ComparisonsThe comparison impacts provided in Table 4.9 show estimates for the impact of the GreatLakes Biodiesel Plant construction and operations on the U.S. as a whole, and the GreatLakes Region as discussed above.Table 4.9: Great Lakes Biodiesel Plant Construction Totals Impact Comparisons, U.S., GreatLakes Region (2005 dollars); Year 1, Year 2Source: IMPLANYear 1 2 TotalUnitedStatesGreatLakesValue Added Totals $33,169,760 $16,809,880 $49,979,640Employment Totals 529 265 NAOutput Totals $65,410,434 $32,705,217 $98,115,651Value Added Totals $22,606,772 $11,303,386 $33,910,158Employment Totals 365 182 NAOutput Totals $43,003,008 $21,501,504 $64,504,513Table 4.10: Great Lakes Biodiesel Plant Operation Totals Impact Comparisons, U.S.,Great Lakes Region (2005 dollars); Typical YearSource: IMPLAN Value Added Employment OutputUnited States $61,545,932 845 $181,918,066Great Lakes $20,187,559 231 $79,035,22635