Identify and describe one potential economic effect of an offshore wind project.
(2 points; 1 point for correct identification of a potential economic effect and 1 point for correct description of an identified economic effect. The description point cannot be earned without correct identification of a potential economic effect.)
Identify one potential economic effect
Describe one potential economic effect
Job creation (+)
- Jobs will be created in construction, operation, maintenance, etc.
Additional income (+)
- Local municipalities receive more taxes (income, sales, property) paid by utility and workers
Decreased electricity
costs (+)
- Electrical production costs will be lower, which will reduce electricity rates for consumers
Less reliance on foreign energy resources (+)
- Transportation costs to deliver fuels will be reduced
High initial construction/ high maintenance costs
(-)
- Local taxes/fees/rates will increase to support construction costs associated with building of facility
- Parts and personnel must be transported off-shore for
construction, repairs and maintenance
Decreased property
value (-)
- Property values will decrease in coastal areas due to unfavorable
aesthetics
Loss of income (-)
- Turbines negatively affect the aesthetics, which negatively
impacts tourism, fishing, whale watching, etc.
Job loss (-)
- Jobs will be lost in the traditional energy production sectors (coal, nuclear)
Subsidies cost (-)
- State subsidies to offset cost of building offshore and transmission lines to coast will increase; costs may be recovered with increased taxes