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The scope of this research is to make quantitative estimates of the potential economic and employment impacts of renewable energy self-sufficiency. The study aims to make generalizations on a regional, or even national level, and to give directions for future research. This paper analyses direct monetary values and employment impacts in two regions, in a theoretical situation where all energy is produced by renewables from the respective region. Renewable energy, especially utilization of existing but presently unused resources, can play an important role in vitalizing regional economies, especially in rural areas. The money spent on fossil energy could be kept circulating in the regional economy. The amount spent on energy in the research areas was almost €4,860 per capita per year, totalling more than €300m annually. The existing data shows that there is the potential for self-sufficiency, or even surplus production. The results suggest that the regional economic impacts increase considerably if the region is self-sufficient in raw materials, including intermediates. On a larger scale, e.g., nationally, the loss of jobs in the fossil energy industry and the eventual variations within economies potentially based on renewable energy, will affect the overall impacts. Highlights  In rural areas, 100% renewable energy can potentially be produced.  Renewable energy can replace fossil fuels and keep money within the region.  Renewable energy can contribute up to almost €5,000 per capita to regional economies.  Employment, vitality and local business add value to the regional economy.

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Small regions and towns often experience problems such as high out-migration and unemployment. In these situations there is an urgent need to do something positive. Infrastructure development projects, partially financed by the national government, are a popular suggestion. We ponder the relevance of these actions in this paper in a context of project evaluation. We introduce computable general equilibrium (CGE) modelling as a complement of the other quantitative evaluation techniques. We will use the town of Lapua in South Ostrobothnia, Finland, which is planning to implement two large-scale infrastructure projects, as an example. Our simulation tool is the Finnish multi-sector and interregional CGE RegFin model. We consider the regional short-run effects of the construction phase, the long-run effects of new business activity and the so-called secondary effects based on the commuting and trade patterns of the households.Infrastructure investment, quantitative project evaluation techniques, CGE RegFin regional model, macro and employment multiplier effects, C68, R11, R13,

The demand for and supply of forest biomass have both been increasing in recent years, which will set new requirements for forest management. Thus, new studies on regionally suitable forest management regimes to fulfill the needs of potential new investments and the impacts on wood supply potential on regional socioeconomic welfare are called for. The aim of this study was to examine the impacts of intensive forest management due to increased demand for wood biomass, from the regional economy point of view. In particular, the impact of intensive forest management on 1) regional gross domestic product (GDP), 2) private consumption, and 3) employment were assessed. The study was carried out by using computable general equilibrium (CGE) modelling combined with the requisite statistics and simulation of regional forest potential in the future. The results showed that total regional forest biomass supply with more intensive forest management could be increased annually on average by 26% (1.7 Mm 3) by 2030 compared to the business as usual (BAU) scenario. In this study, regional demand was increased by a hypothetical saw mill (0.5 Mm 3) and biorefinery (0.7 Mm 3). Total regional socioeconomic benefits could be 2.8% (€150 M) for GDP, 1.5% (€49 M) for private consumption and 1.6% (780 person-years) for employment, larger by 2030 than in the BAU scenario including multiplier effects. The study demonstrated how much regional socioeconomic welfare would increase if regional wood demand with new investments combined with more intensive forest management and wood supply had more attention paid to it.