1978 DOE SPS Economic Demographic Issues

reasons. First, Santini’s findings, as indicated in the previous section, strongly support the use of export-base theory in projecting regional economic and demographic change. Second, actual sites have not been selected and, as explained in Sec. 3, demographic impact greatly depends on labor force availability which varies between regions. Use of an export-base approach could be used to show how demographic impact varies depending on alternative rectenna locations that might be selected. Third, regional shifts in energy production, total electric generating capacity (i.e., the availability of electricity) or other factors may well alter the spatial distribution of economic activity before SPS becomes operational. The export-base approach can deal with this uncertainty by employing different forecasts of future regional economics to gauge the range of demographic impacts from rectenna construction. Finally, and most important, since export-base modeling involves a straightforward multiplier approach, direct uses can be made of the rectenna siting work and construction labor force estimates that will be developed in other parts of the assessment process. In addition to these advantages, the exportbase approach as operationalized in SEAM provides a foundation for the study of local service impacts resulting from population change due to rectenna construction. 4.2.2.2 Rectenna Operation Several factors will influence the attraction of industry when the 5~GW rectenna sites become operational. Section 2 reviewed the primary and secondary factors affecting industrial location. Those factors considered primary in business location included: energy availability and costs; transportation availability and costs; raw materials availability and cost; the cost, availability, and productivity of labor; and market factors. This section relates each of these factors to operation of the proposed SPS. A critical question concerning energy availability is, again, the location of the rectenna sites. Industries located in certain areas of the country may not be able to obtain their electric power needs by the year 2000, at any cost. For example, the long-term electric power situation for aluminum production (an electric-intense process), is uncertain in the Pacific Northwest. Based on the projected supply and demand for electric power in the region, the Bonneville Power Administration announced in 1976 that it could not renew its power contracts with the aluminum industry after the 1984-88 period when the

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