Bureau of Business Research
Date of this Version
3-25-2014
Abstract
Nebraska businesses and households are actively involved in the coal industry as energy producers and as transportation providers. Nebraska has seven coal-fired electric generation stations. There are 839 workers employed at these stations, or in positions at other locations which are directly tied to coal-fired electricity generation, with annual wages and benefits of approximately $87 million. The stations benefit the Nebraska economy by providing reliable, low cost energy utilized by Nebraska industries, agricultural producers, commercial businesses and households. In addition, many of these stations generate power that is “exported,” meaning that it is purchased by out of state customers. Such export activity creates an economic impact on the state economy. Collectively, the 7 stations export approximately 9.6 percent of their output. These exports generate a direct economic impact of $55 million in output, $34 million in value added, $8 million in labor income and create 81 jobs in Nebraska. Multiplying this effect through the Nebraska economy generates a total economic impact of $77 million in output, $16 million in labor income and 246 jobs. This economic activity generates $4.1 million in income, sales and property taxes.
Much of the nation’s coal heading eastward passes through Nebraska. In addition, Nebraska is the home of the headquarters of Union Pacific railroad and hosts three sizable switching yards for that company as well as BNSF. Activity in all of these sectors creates economic impact in Nebraska. Coal-related rail activity directly generates $2.9 billion in output, $1.3 billion in value added, $745 million in labor income and creates 6,750 jobs in Nebraska, as seen in the second section of the table. Multiplying this effect through the Nebraska economy generates $4.8 billion in output, $1.4 billion in labor income and 22,600 jobs. This economic activity generates $137 million in income, sales and property taxes.
Collectively, these two coal-related industries generate almost $4.9 billion in output, over $1.4 billion in labor income and more than 22,800 jobs. This economic activity generates $142 million in income, sales and property taxes.
Comments
Prepared for the Nebraska Public Power District
March 25, 2014
Bureau of Business Research
Department of Economics
College of Business Administration
University of Nebraska—Lincoln
Dr. Eric Thompson, Director
www.bbr.unl.edu