Add $700+ Million to Economy
Analysis in 5 Atlantic Coast states finds $3.6 billion economic potential
- Every $1 spent building offshore wind generates $1.83 for New Jersey’s economy
- Over $100 million in state, local, and federal taxes would be generated during construction and operations.
- Potential offshore oil spill poses $307 million threat to state economy
WASHINGTON, DC – (August 30, 2018) – Harnessing offshore wind energy in New York would create over 4,300 new jobs and contribute over $700 million to the economy, according to a new economic analysis of five Atlantic coast states from the national, nonpartisan business group E2 (Environmental Entrepreneurs).
The report, Offshore Wind: Generating Economic Benefits on the East Coast, studied the economic impact from building a single average offshore wind farm (352 MW, or roughly 44 turbines) off the coast of New Jersey and found that for every dollar spent building offshore the wind farm $1.83 would be generated for the state’s economy.
“This report proves offshore wind energy has the potential to add jobs, tax dollars and economic benefits these states while protecting their coastal economies,” said Noah Dubin, E2 Eastern States Advocate. “This is a good deal for New Jersey and its businesses, bringing in far more investment and tax revenue than the cost of the wind farm.”
Already supporting over 50,000 clean energy jobs, workers in New Jersey would benefit from nearly $280 million in additional wages building the average-sized wind farm. Once in operation, the potential wind farm would add over $30 million annually to the economy with annual wages exceeding $13 million throughout life of the wind farm.
“While solar, clean vehicles, and energy efficiency continue to prove their importance to American job growth, offshore wind is the next important play, with enormous economic and quality jobs opportunity for New Jersey and the East Coast economy,” said Kit Kennedy, senior director of the Natural Resources Defense Council's climate and clean energy program. “The numbers show that sustainable offshore wind power makes economic sense – and offshore drilling doesn’t. That’s why it’s exciting that New York and states up and down the East Coast are committing to move forward with big plans for offshore wind development with combined with smart ocean planning.”
Beyond jobs and increased economic growth, the analysis predicts that building the offshore wind project would generate more than $38.5 million in state and local taxes during construction and $1.5 million annually throughout life of the wind farm. Federal tax revenues would be over $66 million during construction and exceed $3 million annually once in operation.
Conducted for E2 by BW Research Partnership, the report also analyzed the potential threat offshore oil and gas development poses to New Jersey tourism and recreation sectors. This comes as the Trump administration is proposing to open the vast majority of federal coastal waters to expanded offshore drilling. The proposal has been met by vehement opposition, in large part due to drilling’s impacts on coastal economies and residents. This report confirms these concerns, documenting that just a single month of beach and fishing closures due to an oil spill would cost New Jersey $307 million in GDP and $163 million in lost wages.
Released today, the report also analyzed the economic impact of building offshore wind in four other Atlantic Coast states—New York, Virginia, North Carolina, and South Carolina— concluding offshore wind projects in all five states could generate more than 25,000 jobs in total and add nearly $3.6 billion to the economy in 2022.
Benefits from Building 1 Average Offshore Wind Farm (352MW, About 44 Turbines):
- South Carolina: 5,647 jobs created, $242 million in wages, and $877.8 million in total added to economy
- North Carolina: 5,522 jobs created, $251 million in wages, and $710 million in total added to economy
- Virginia: 4,377 jobs created, $108 million in wages, and $640.7 million in total added to economy
- New Jersey: 4,313 jobs created, $278.9 million in wages, and $702 million in total added to economy
- New York: 4,063 jobs created, $281 million in wages, and $737 million in total added to economy
Cost of One-Month of Beach & Fishing Closures Due to Oil Spill:
- South Carolina – $117 million in lost wages and $314 million in GDP
- North Carolina - $57 million in lost wages and $120 million in GDP
- Virginia – $90 million in lost wages and $175 million in GDP
- New Jersey – $163 million in lost wages and $307 million in GDP
- New York – $870 million in lost wages and $1.8 billion in GDP
More detailed breakdowns of the economic benefits offshore wind would provide to all five Atlantic Coast states – and the economic costs of an oil spill – can be found at https://www.e2.org/offshore-wind-economic-benefits/.
For more information about increasing offshore wind development and policies that grow clean energy jobs, please contact Michael Timberlake (firstname.lastname@example.org).
About BW Research
BW Research Partnership is a full-service, economic and workforce research consulting firm and is the nation’s leading provider of accurate, comprehensive energy and clean energy research studies, including the United States Energy and Employment Report (USEER), National Solar Jobs Census, wind industry analyses for the National Renewable Energy Laboratory and the Natural Resources Defense Council, and state-level clean energy reports for Massachusetts, New York, Illinois, Vermont, Iowa, Rhode Island, Florida, and Missouri, among others.
Environmental Entrepreneurs (E2) is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and manage more than $100 billion in venture and private equity capital. For more information, see www.e2.org or follow us on Twitter at @e2org.
source Environmental Entrepreneurs