The Economic Impact of RhodeWorks: An Accelerated Transportation Restoration Plan

REMI was engaged by the Rhode Island Department of Revenue’s Office of Revenue Analysis on behalf of the Rhode Island Department of Transportation to analyze and model the economic and demographic effects of the RhodeWorks transportation infrastructure improvement and restoration plan. Rhode Island’s transportation infrastructure had reached a point of dilapidation where if many of the failing bridges were not repaired in the short term, the costs of bridge improvements will grow as a state will soon be required to replace, instead of restore, its transportation infrastructure. The assessment included the economic and demographic impacts over an 11-year time period associated with: 1) the construction of transportation infrastructure capital improvements; 2) project financing options; 3) avoided costs of bridge closings and postings to the state; and 4) benefit programs to support the trucking industry included in the RhodeWorks proposal. All eight modeled scenarios displayed an increase in all the economic measures tracked for this analysis.

Regional Economic Models, Inc. – The Economic Impact of RhodeWorks: An Accelerated Transportation Restoration Plan [full PDF]

South Carolina Offshore Wind Economic Impact Study Phase 2

The South Carolina Coastal Conservation League and the Strom Thurmond Institute at Clemson University collaborated on an economic impact study on behalf of the South Carolina Energy Office that was intended to assess the economic impact of a demonstration scale offshore wind farm on the state of South Carolina. Analysts incorporated the REMI model to estimate the current and potential economic impact on South Carolina from the construction and operation of a 40MW offshore wind farm before evaluating the offshore wind farm’s net impact on electric rates. The economic and fiscal impacts on the state were measured in terms of employment, total compensation, output, net state or local government revenue, direct effects, indirect effects, and induced effects. This report, combined with the first phase that was completed in 2012, discovered that the installation and operation of an offshore wind farm in South Carolina’s waters would result in positive economic impacts for the state overall.

South Carolina Coastal Conservation League & Clemson University – South Carolina Offshore Wind Economic Impact Study Phase 2 [full PDF]

A Comprehensive Financial and Economic Assessment of Future Iowa Baseload Generation in a Carbon-Constrained Environment

This assessment prepared by NERA Economic Consulting for the MidAmerican Energy Company using the REMI PI+ model to evaluate the Iowa macroeconomic impacts for the nuclear SMR and natural gas combined cycle deployment options. The deployment of nuclear and natural gas generation has fundamental differences in the allocation of costs over the project lifetime, including higher on-site employment at a nuclear site, lower fuel costs for a nuclear deployment that chance out-of-state fuel supply costs, and differential Iowa electricity rates over the period through 2080 for the nuclear SMR and natural gas combined cycle deployments. NERA utilized a three-region PI+ model that incorporated the state of Iowa, the rest of the Upper Midwest (Wisconsin, Illinois, Missouri, Kansas, Nebraska, South Dakota, North Dakota, Minnesota), and the rest of the United States. The analysis examined eight energy market scenarios in the state of Iowa in terms of gross state product, total employment, and disposable personal income, which were identified as the key results for this assessment. Researchers discovered that the expenditure inputs to the PI+ model generate positive economic impacts, however, a scenario with higher electricity and natural gas price inputs typically brought about negative economic impacts due to higher electricity and natural gas prices increasing production costs for businesses and lowering purchasing power for households.

NERA Economic Consulting – A Comprehensive Financial and Economic Assessment of Future Iowa Baseload Generation in a Carbon-Constrained Environment [full PDF]

Impacts of Potential Aluminum Tariffs on the U.S. Economy

This economic impact study conducted by NERA Economic Consulting and prepared for Emirates Global Aluminum used a REMI macroeconomic model to estimate the effects of “across-the-board” aluminum tariffs on primary and semi-finished aluminum products of 7% and 30%. The REMI model estimated the increased output and employment in the domestic primary and semi-finished products sectors, the reduced output, employment, and higher consumer prices in the rest of the economy, and the federal government revenues generated by the tariff. The analysis found that tariffs on aluminum would result in reductions in output, employment, and personal income in the rest of the economy that would substantially exceed any aluminum sector gains and negatively affect manufacturing employment specifically.

NERA Economic Consulting – Impacts of Potential Aluminum Tariffs on the U.S. Economy [full PDF]

2015 Tax Preference Performance Reviews: Motion Picture Program Contributions

Businesses were able to claim a credit against their business and occupation tax equal to the amount of contributions they made to the Washington Motion Picture Competitiveness Program. The program reimbursed motion picture companies for their qualifying expenses in Washington with these contributions and the two types of beneficiaries considered for this study by the Joint Legislative Audit & Review Committee were the businesses producing motion pictures in Washington that benefited from the funding assistance provided by the program. Researchers determined specific outcomes using the REMI model, but were unclear on the program’s desired employment results and fiscal impacts.

Joint Legislative Audit & Review Committee – 2015 Tax Preference Performance Reviews [full PDF]