1978 DOE SPS Economic Demographic Issues

to minimize the displacement of population. These land and population considerations will cause the rectennae to be sited either in rural areas of urbanized regions or in rural regions of the U.S., and the displaced population will have to be redistributed among other geographic locations and sectors of the economy. Another, and in many respects, more important consideration is the proximity of the rectennae to major loads or utility tie points. Assuming that the utility interfaces are within 150 miles of the receiving site, a transmission efficiency of 98% can be expected.2 Since the price of SPS electricity will be affected by transmission efficiency, there may be incentives for electric-intensive industries to move to regions containing rectennae, and this would, in turn, improve the local tax base.* Furthermore, to the degree that these industries need labor, population can be expected to move with the jobs that would be relocated. These are, in elementary terms, the major economic and demographic issues that are addressed in this white paper. Except for some broad generalizations, there is no information about industrial relocation or population migration consequences in the existing SPS literature. Therefore, this preliminary assessment is based upon literature drawn from the fields of economics and demography and professional judgments formulated by these authors based on technical descriptions of the SPS concept. Sections 2 and 3 of this paper review the rather extensive literatures dealing with industrial location and population migration. These sections relate migration to past movements of industry that have occurred independent of the SPS issue. Section 2 summarizes the historical development of industrial location theory and places in perspective factors that have been shown by empirical research to influence the distribution of industrial activity. Section 2 concludes with a review and assessment of approaches to locational analysis that can be applied to the study of industrial location as it may be affected by SPS. Section 3 reviews literature developed from the two major schools of theory dealing with the relationship between economic development (i.e., industrial location) and population migration and, based on the foregoing assessment of approaches to locational analysis, we recommend use of an export-base approach to study the regional economic and demographic consequences of SPS rectenna siting. Building on this background, Sec. 3 also *0f course, any improvement of local tax bases due to industrial relocation would be accompanied by a concomitant, although more diffuse, decaying of some other local tax bases.

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