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The Long-Term Economic Impact of Energy Efficiency and Renewable Energy Programs for Iowa

By Glen Weisbrod, Karen R. Polenske, Teresa Lynch and Xianuan Lin. Submitted by Hagler Bailly Consulting for the Iowa Dept. of Natural Resources, 1995

This report was produced in 1995 by Glen Weisbrod of Hagler Bailly*, Karen R. Polenske of MIT*, Teresa Lynch of MIT* and Xianuan Lin of Boston Univ.. *Note: Weisbrod and Lynch subsequently became staff of Economic Development Research Group; Dr. Polenske is a consultant to the firm.

This study examined the long-term economic development implications of energy efficiency programs, energy pricing/ cost changes, and renewable energy (biomass and wind power). It received national attention because it featured several firsts:

1. A detailed survey of the state's utilities and agencies to document how different program elements affect the private sector economy through spending, participation, program delivery and trade ally mechanisms;

2. A survey of manufacturers and distributors to document the extent of in-state purchases from suppliers and in-state sales to customers;

3. An economic profile of financial savings, costs incurred and the business revenue gains associated with different types of energy efficiency and renewable energy programs; and

4. Application of a dynamic, time-series model, which extended the basic input-output model framework to also account for price shifts, labor/capital substitution, business profitability and economic development competitiveness issues. The REMI model was used as a basis for applying a larger economic impact forecasting system.

Download report - part 1, which includes the Executive Summary, Ch.1 Introduction and Ch.2 Methodology. pdf file (677k)

Download report - part 2, which includes Ch.3 Analysis of Energy Efficiency Programs and Ch.4 Analysis of Renewable Energy Production Scenarios. pdf file (522k)

Download report - part 3, which includes Ch.5 Iowa Model Template, Appendix A. Inventory of Iowa Programs and Appendix B. Survey Instrument. pdf file (609k)

Download the article: Weisbrod, G. & H. Friedman. 1996. "Economic Competitiveness Impacts of Utility Rates and Programs" Energy Services Journal, v.2, n.3, Summer, pp.133-146. pdf file (180k)

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