Ownership and Regional Economic Impact: Wind Development in the State of Minnesota

摘要

This study investigates the regional economic impact consequences of local vs. external ownership in the developing wind industry in the state of Minnesota (U.S.A.). We employ a realistic pro forma model of a financial "flip" structure, whereby a local equity group pairs with an outside, tax-motivated equity partner. The present value of residuals as well as the other O&M expenditures are annuitized and entered into a state-level input-output model. In order to bracket the range of possible outcomes, we run two sets of parameter assumptions ("pessimistic" and "optimistic") through the local equity group's pro forma, and subsequently the state-wide input-output model. According to these two scenarios we find that the impact on state-level value added is 3.1 and 4.5 times larger, respectively, compared with the impacts from the external ownership model. The impact on employment is respectively 2.5 and 3.5 times larger.