The employment and income effects of cleaner coal: the case of FutureGen and rural illinois

After a brief discussion of the broad array of issues currently surrounding implementation of lower-carbon power plants utilizing carbon capture and storage, this paper takes an input-output approach to estimating the local economic impacts expected from the FutureGen project. We estimate the economic impacts from the permanent full time jobs created from the operation of the FutureGen project and/or a carbon dioxide (CO2) injection project if it were to be located in Fayette County. Comparing the estimated economic results of local impact to independent secondary data from the U.S. Bureau of Economic Analysis showed FutureGen could increase economic activity up to 4 %. This is equivalent to adding a new sector such as mining, construction, or finance and insurance to the rural economy. This type of economic data could help inform communities' discussions on plans toward cleaner environment and energy.