Economic impact analysis of potential geothermal resource areas : Circular C-105

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State of Hawaii, Department of Land and Natural Resources, Division of Water and Land Development
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To facilitate this economic assessment, two assumptions are made: (1) a 20 to 30 megawatt (MW) plant would be constructed, and (2) the application of the geothermal wells would be for the production of electricity for local consumption The overall assessment is that a 20 to 30 MW geothermal power plant will have some economic impact a e-wide and County-wide basis, but the impact would probably not be significant. Based upon the data available, the direct wages to the 25 direct project employees will be about $560,000 per year. This direct income will stimulate a multiplier effect totaling an estimated $1. 3 million. Additionally, an estimated 57 additional jobs will be created. The selected sources of public revenue analyzed will not yield a significant amount, in relative terms as well as in absolute ones, due to the size of the plant. However, only after a more complete analysis of the public revenue and public or community resource cost of a specific development will it be known whether the public revenues will outweigh the public costs. Overall, the impact of the 25 additional households to the community will be primarily in the housing market, assuming that all the 25 workers needed by the plant come from outside the County. Realistically, only a portion will be "imported" into the County. Thus the impact on housing is not expected to be as great. Other community resources will not be affected in a significant manner. For the production of electricity for local consumption only, the assumed 20 to 30 MW plant size being considered here is reasonable. However, direct use and other applications would alter the plant size requirements. In addition, more significant impacts on the economy would occur, both benefits and costs: more jobs, increased public revenue, increased housing and infrastructure demands, etc. Regardless of the ultimate size of the plant decided upon, a more definitive assessment of the relative gain or loss to be realized by the existence of the geothermal plant must be made on a case-by-case basis.
DLNR circulars, geothermal resource subzones, impact, Hawaii, Geothermal resources--Economic aspects--Hawaii
State of Hawaii, Department of Land and Natural Resources, Division of Water and Land Development. September 1984. Economic Impact Analysis of Potential Geothermal Resource Areas - Circular C-105. Honolulu, Hawaii: State of Hawaii, Department of Land and Natural Resources, Division of Water and Land Development.
22 pages
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