Appendix B: Measuring the Economic Impact of the XL Pipeline
Ga
Goss & Associates
Direct Economic Impacts Keystone XL spending flowing into the area has direct economic effects on the local economy via expenditures for goods and services and for employee salaries. The most obvious direct expenditures are payment of wages to Nebraska workers employed by Keystone XL. In addition, expenditures by TransCanada nonNebraska workers employed in the state generate direct impacts on the state affecting primarily the hotel and motel industry and retail trade industries. Direct economic impacts are color coded blue in Figure B.1.
...Keystone XL increases overall area income and population, which produces another round of increased spending adding to sales, earnings and jobs.
Indirect Economic Impacts Keystone XL also produces indirect economic effects on the area economy. For example, XL contractors will purchase supplies from area wholesalers. Furthermore, Keystone XL encourages the startup and expansion of other businesses. Keystone XL generates indirect effects by increasing: (a) the number of firms drawn to the state, (b) the volume of deposits in the state’s financial institutions and, (c) economic development. Examples of indirect economic impacts are color coded yellow on Figure B.1.
Induced Economic Impacts Induced impacts in the region occur as the initial spending feeds back to industries in the region when workers in the state purchase additional output from local firms in a second round of spending. That is, Keystone XL increases overall area income and population, which produces another round of increased spending adding to sales, earnings and jobs. Examples of induced economic impacts are color coded red in Figure B.1.
The Economic Impact of the Keystone XL Pipeline on the State of Nebraska
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