Research Article

Economic Impacts of Using Switchgrass as a Feedstock for Ethanol Production: A Case Study Located in East Tennessee

Table 5

Economic impacts of investing and operating a switchgrass-based ethanol refinery by harvest system.

Type of investment and impact typeRound bale, unprotectedSquare bale, top and bottom protected
JobsLabor incomeValue addedOutputJobsLabor incomeValue addedOutput

Conversion facility investment
 Direct 2,244 $134,087,241$176,901,786$374,613,302 2,244 $134,087,241$176,901,786$374,613,302
 Indirect 983 $46,442,213$71,269,620$127,950,178 983 $46,442,213$71,269,620$127,950,178
 Induced 1,408 $51,375,476$94,547,910$156,267,010 1,408 $51,375,476$94,547,910$156,267,010

 Total 4,635 $231,904,930$342,719,316$658,830,490 4,635 $231,904,930$342,719,316$658,830,490

Switchgrass establishment
 Direct 251 $8,589,478$10,207,536$15,854,564 258 $8,835,025$10,494,030$16,256,868
 Indirect 24 $1,089,602$1,755,764$3,443,035 24 $1,116,248$1,801,257$3,530,278
 Induced 76 $2,765,003$5,091,323$8,411,910 78 $2,842,820$5,234,625$8,648,658

 Total 351 $12,444,083$17,054,623$27,709,509 361 $12,794,093$17,529,912$28,435,804

Conversion facility annual operating
 Direct 60 $4,150,897$67,201,544$169,912,135 60 $4,150,897$69,158,596$169,912,135
 Indirect 324 $14,806,660$22,271,726$47,650,262 289 $13,600,361$20,505,583$44,775,299
 Induced 148 $5,397,277$9,938,523$16,421,938 139 $5,052,759$9,303,923$15,373,700

 Total 532 $24,354,834$99,411,793$233,984,335 488 $22,804,017$98,968,102$230,061,134

Switchgrass production annual operating
 Direct927$7,229,864$12,819,955$48,340,630951$7,416,086$13,149,472$49,580,673
 Indirect361$12,560,785$17,416,003$27,091,319402$14,125,332$19,199,758$29,663,678
 Induced154$5,623,153$10,351,628$17,107,486168$6,117,413$11,260,785$18,610,907

 Total1,442$25,413,802$40,587,586$92,539,4351,521$27,658,831$43,610,015$97,855,258

Cropland converted
 Direct (314)−$1,733,939−$3,970,936−$13,764,754 (313)−$1,717,907−$3,938,061−$14,116,522
 Indirect (71)−$2,435,781−$4,405,345−$7,503,559 (78)−$2,662,111−$4,698,499−$7,960,489
 Induced (33)−$1,186,188−$2,183,805−$3,608,719 (34)−$1,248,487−$2,298,195−$3,797,822

 Total (417)−$5,355,908−$10,560,086−$24,877,032 (425)−$5,628,505−$10,934,755−$25,874,833