Local and Regional Economic Impacts of Biofuel Development
Expanded processing of agricultural products in rural areas has been widely pursued as a strategy for rural economic development. By adding value to farm products before they leave the area, new processing plants can create new employment opportunities and generate economic spinoffs in rural areas that have experienced economic stagnation or decline as a result of long term trends of farm consolidation. In addition, farmer owned processing facilities provide a way for producers to integrate forward and capture potential profits from processing and marketing their products. Consequently, the expansion of agricultural processing in rural areas usually receives broad-based support from commodity groups, rural development interests, and state political leaders. In recent years, the most prevalent type of new agricultural processing ventures in the Midwest and Great Plains states has been corn ethanol plants. Like other types of agricultural processing, these biofuel ventures have generally received widespread support, and numerous studies have addressed their contributions to local or regional economies. However, while the methods employed have seemingly been quite similar, the findings have varied widely with the impacts attributed to ethanol development differing as much as ten-fold. The purpose of this paper is to (1) examine reasons why estimates of local or regional economic impacts of biofuel development may vary and (2) compare the economic impacts of corn-based ethanol production with those expected to be associated with cellulosic ethanol production.
Ethanol: Implications for Rural Communities
This paper presents an overview of the U.S. ethanol industry, its location, and the public policy umbrella that supports its growth. Then the paper analyzes what happens when a county adds an ethanol plant, demonstrates what must be done to modify input-output models to capture those effects realistically, and applies the approach to proposed plants in three counties.
Estimating the Contribution of a Multi-Purpose Event Facility to the Area Economy
While the economic impacts of professional sports events and entertainment facilities in major metropolitan areas have been the subject of numerous studies, sports and entertainment facilities in smaller cities have received less attention. This study addresses the economic impact of a multi-purpose sports and auditorium facility located in a small metropolitan area. Intercept surveys at eleven representative events provided information on attendees' expenditures and residence and on the role of the event in motivating visits to the area. Data on attendee expenditures, together with facility operation and vendor outlays, were applied to an input–output model to estimate secondary impacts. The results indicate that the events hosted at the facility varied substantially in their potential to draw attendees from outside the local area and that attendees' expenditure patterns also varied by event type. The overall economic impact of the facility was substantial.