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Socioeconomic Impact of Solar Thermal Electricity Deployment in Spain – A Brief Review
the PER 2005–2010, which states that by 2010 solar thermal installed 63,485, while the indirect employment generated would reach 45,508
capacity should reach 500MW. In order to do so, the socioeconomic one-year jobs. Although these results should be interpreted with
impacts associated with two individual solar thermal power plants (a caution due to the methodological limitations of the I–O
50MW parabolic trough plant and a 17MW tower plant) were first methodology, it can be concluded that the socioeconomic effects
estimated using an I–O methodology. By using this methodology it is derived from the accomplishment of the PER’s solar thermal installed
possible to estimate both direct and indirect socioeconomic effects capacity would be remarkable in terms of both increased demand for
during the construction and operation phases of the plants. goods and services and employment creation. n
Results show that the total effect on the demand for goods and Acknowledgements
services would amount to 10,538MW, which is equivalent to an
5
This short article is based on a previous article by Caldés et al.,
average of €21.1 million for every MW installed. With respect to the which should be consulted for more detailed information not
effect on job creation, total direct employment generated would be provided here.
1. Lechón Y, de la Rúa C, Sáez RM, Life Cycle Environmental beverage industry, Document No. 23, Centre for Advanced of solar thermal electricity deployment in Spain, Energy Policy,
Impacts of Electricity Production by Solar thermal Power Computation, University of Illinois, Urbana, IL, 1972. 2009;37:1628–36.
Plants in Spain, J Solar Energy Eng, 2008:130. 4. Holland D, Cook S, Sources of structural change in the 6. National Institute of Statistics (INE), Quarterly survey of
2. Ten Raa T, The Economics of Input–Output Analysis, Cambridge Washington economy: an input-output perspective, Ann labour costs.
University Press, Cambridge, 2005. Regional Sci, 1992;26:155–70. 7. DLR, MED-CSP Concentrating solar power for the
3. Hannon B, System energy and recycling: a study of the 5. Caldés N, Santamaría M, Varela M, Sáez R, Economic impact Mediterranean Region, Executive Summary, 2005.
Appendix 1: Input–Output Analysis – Methodological Steps
According to the input–output (I–O) methodology, the relationship project. The result from this operation is a column vector ∆Q (n*1)
between the expenditure generated by a certain project and its whose elements sum is the total impact of the investment, which
impact on the demand for goods and services is depicted by the includes both direct and indirect impacts.
following equation:
Besides increasing the demand for certain goods and services,
∆Q
y
= (I - A)
-1
∆D
y
(1) the development of this type of project generates impacts on the
employment in a direct and indirect way. In the first place, a column
where: vector L
s
must be constructed based on the number of employed
∆Q = increase in the total demand for goods and services (direct people across each sector in the economy (number of jobs per
and indirect) million euros produced in each sector). Second, L
s
must be multiplied
I = matrix unit by ∆Q (which represents the previously obtained vector that
A = technical coefficient matrix accounts for the total economic impact). The result from this
∆D = increase in direct demand for goods and services generated by multiplication is the total number of jobs that have been created in
the development of a certain project y each sector due to this project. Each element of the resulting vector
shows the total number of new jobs in each sector created both in
The different elements included in matrix A (nxn) are named technical a direct or indirect way.
coefficients (aij) and reflect the percentage of goods or services from
sector ‘i’ that are required to produce one good L
s
∆Q
y
= L
y
(2)
or service unit from sector ‘j’. In other words, the technical coefficients
indicate the amount that sector ‘j’ requires from sector ‘i’ in order to where
produce one unit of product or service j (both quantities should be L
s
= vector of employees per sector
expressed in their monetary value at constant prices): L
y
= direct and indirect impact over employment due to the project
X
ij
where: A = {a
ij
} being a
ij
= Based on this estimation, the number of direct and indirect
X
j
employments could be estimated using the following expressions:
X
ij
= goods or services that sector j requires from sector i (in monetary
terms) Direct employment = L
s
∆D
y
; indirect employment = L
s
(∆Q
y
– ∆D
y
)
X
j
= total production from sector j
Finally, and based on the previous results, it is then possible to
In the case of Spain, the National Statistics Institute (INE) regularly compute the multiplying effect of a certain project. A multiplier is a
publishes the technical coefficient matrix A (as well as the number that indicates by how much a certain economy is going to
symmetrical I–O table on which the technical co-efficient matrix is grow due to a certain project development (taking into account both
built). Once the so-called Loentief inverse matrix (I-A)-1 has been direct and indirect effects). The general formula to compute the
constructed, it is then possible to estimate the impact derived from multiplying effect (M) is:
a certain project by multiplying (I-A)-1 by the investment as well as
∆Q
operation and maintenance costs vector ∆D associated with such a Multiplier (M) = total effects/direct effects = (3)
∆D
MODERN ENERGY REVIEW VOLUME 2 ISSUE 1
83
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