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Assessing the Economic Development
Impacts of Wind Power
FINAL REPORT
Prepared for
National Wind Coordinating Committee
c/o RESOLVE
1255 23
rd
Street, Suite 275
Washington, DC 20037
By
Northwest Economic Associates
12009 N.E. 99
th
Street, Suite 1410
Vancouver, WA 98682-2497
February 12, 2003

Northwest Economic Associates

i
Table of Contents
Executive Summary
ES-1

Introduction
1

Case Study Methodology........................................................................................................................1

Intended Audience..................................................................................................................................2

Organization of Report ...........................................................................................................................2

How the Study Was Conducted
3

Economic Links in Rural Economies .....................................................................................................3

Identifying Construction Needs..............................................................................................................5

Identifying Operation and Maintenance Needs ......................................................................................6

General Effects of Wind Power Development
8

Local Interest in Wind Power Development ..........................................................................................8

Landowner Revenues..............................................................................................................................8

Job Creation............................................................................................................................................9

Tax Effects..............................................................................................................................................9

Economic Setting for Case Studies and Economic Effects on Case Study Economies
12

Lake Benton I (1998, 107 MW): The Economy of Lincoln County, Minnesota ................................12

Industrial Base................................................................................................................................13

Population ......................................................................................................................................13

Employment ...................................................................................................................................14

Indicators of Economic Well-Being...............................................................................................16

Tax Structure..................................................................................................................................17

Community Services ......................................................................................................................17

Effects on the Economy of Lincoln County, Minnesota ......................................................................18

Employment ...................................................................................................................................19

Personal Income .............................................................................................................................20

Tax Rates and Levels .....................................................................................................................21

Landowner Net Revenues ..............................................................................................................21

Vansycle Ridge (1998, 25 MW): The Economies of Morrow and Umatilla Counties, Oregon .........22

Industrial Base................................................................................................................................23

Population ......................................................................................................................................24

Employment ...................................................................................................................................25

Northwest Economic Associates

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Indicators of Economic Well-Being...............................................................................................27

Tax Structure..................................................................................................................................27

Community Services ......................................................................................................................28

Effects on the Economies of Morrow and Umatilla Counties, Oregon................................................29

Employment ...................................................................................................................................30

Personal Income .............................................................................................................................30

Tax Rates and Levels .....................................................................................................................32

Landowner Net Revenues ..............................................................................................................32

Delaware Mountain (1999, 30 MW): The Economy of Culberson County, Texas ............................33

Industrial Base................................................................................................................................33

Population ......................................................................................................................................34

Employment ...................................................................................................................................34

Indicators of Economic Well-Being...............................................................................................36

Tax Structure..................................................................................................................................37

Community Services ......................................................................................................................38

Effects on the Economy of Culberson County, Texas..........................................................................38

Employment ...................................................................................................................................39

Personal Income .............................................................................................................................40

Tax Rates and Levels .....................................................................................................................41

Landowner Net Revenues ..............................................................................................................41

Summary and Conclusions
42

Economic Experiences Common to All Case Study Areas ..................................................................42

Major Differences between Case Study Areas.....................................................................................43

Implications for Interested Parties........................................................................................................44

References
48

Appendix A: Technical Appendix
A-1


This document is being released as a Resource Document for educational and informational purposes.
The document has been reviewed and approved by an NWCC working group with relevant experience;
but, by choice of the NWCC, has not been carried through the full NWCC consensus process. Publication
does not presume that all members have reviewed the content of the document.

Northwest Economic Associates

ES-1
Executive Summary
Introduction
Interest in wind power development as a means of expanding local economies is growing. It
holds promise for providing a new source of short-term employment during construction of
the facility and long-term employment from operating and maintaining the facility. It may
add to the supply of electric power in the area and support some expansion of the local
economy through the ripple effect of initial increases in jobs and income.
Despite a growing body of information about the local impacts both positive and negative
of wind power, the economic impacts of existing wind power developments have not been
analyzed in a consistent manner. This study uses three case studies to estimate the effects of
wind power development on local economies. Both the effects of the construction and the
annual operation and maintenance were studied.
Objectives
While there is a growing body of information about the local impacts of wind power, the
economic impacts from existing wind power developments have not yet been documented
and analyzed thoroughly and consistently. The primary objective of this study is to provide
examples of thorough and consistent analysis and documentation of economic impacts from
wind power development. The methodology employed is illustrated through case studies for
three existing wind power projects. Specific results presented apply to the respective locales
studied and are not meant to be representative of wind power development in general.
However, where possible, insights and generalizations suggested by the case study results are
offered.
Northwest Economic Associates

ES-2
Case Studies
The three case study areas are Lincoln County, Minnesota, Morrow and Umatilla coun