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Beacon Hill Institute on the Draft Environmental Impact Statement for the Cape Wind Energy Project

2005-02-17T19:01:32Z

The Beacon Hill Institute at Suffolk University has studied the Cape Wind proposal in considerable detail, and offers the following comments on the Draft Environmental Impact Statement (DEIS) Reference file no. NAE-2004-338-

1. A systematic cost-benefit analysis â�� missing from the DEIS â�� shows that, with 90% confidence, the costs of the project outweigh the benefits by between $83 million and $333 million, with a mean measure of net cost of $209 million (equivalent to 2.0 cents/kWh produced). This breaks down as: a. Cost of 9.06 cents/kWh (close to the DEIS estimate of 9.00 cents) b. Benefit of 7.06 cents/kWh, of which the savings are: fuel (4.95), capital and operating costs, (0.98), improvements in public health (1.02) and greater energy independence (0.10). The project is of interest to a private developer only because of subsidies of 4.04 cents/kWh, via accelerated depreciation allowances, Massachusetts â��green credits,â�� and a possible Federal Production Tax Credit.

2. The DEIS conclusion of â��no adverse impacts to tourism and recreationâ�� is not supported by the data. a. The only tourism study considered in the DEIS, from Scotland, used a biased sample and does not report the most relevant results (i.e. how many would be deterred, or attracted, by the windmills). b. A Beacon Hill Institute survey of 497 randomly-selected tourists, undertaken in the relevant Cape Cod towns in summer of 2003, found that 5% would visit the Cape less, and 1% would visit more if the windmills were built. Using spending information, and an estimate of the number attracted to the Cape, the BHI study found a net loss in spending on the Cape of at least $57 million annually.

3. The DEIS conclusion that the project would not adversely affect property values is based on a flawed study, ignores other research, and is untenable. a. The DEIS discussion relies primarily on a study by the Renewable Energy Policy Project (whose goal is to â��accelerate the use of renewable energyâ��) in 2003. Its conclusion that wind farms elsewhere in the United States did not harm property values relies on the use of an inappropriate counterfactual, and is largely based on much smaller projects. b. Even if wind farms are associated with higher property values, this is likely attributable to increased tax payments and royalties to local communities and owners â�� which makes them not comparable to the Cape Wind case (no royalties, minor local tax payments).

4. The DEIS estimates of the value of health improvements are greatly exaggerated (at $53 million annually). Our own estimates show health improvements of $7 million, and even this may be overstated. a. The DEIS assumes that the Cape Wind project would offset the dirtiest power plants in Massachusetts. This is incorrect, and it would be more appropriate to use the marginal emissions numbers from ISO-New England, which show avoided emissions that are one fifth as high for NOx and one seventh as high for SO2. b. The DEIS uses outdated emissions data (from 2000 rather than 2002). c. Even the $7 million may overstate the health benefits. BHI assumed that all of the output of the Cape Wind project would offset fossil fuel generation and its associated air pollution. However, it has been argued, convincingly, that the caps imposed by law and regulation on SO2 emissions would continue to be binding, and so the wind farm output would not lead to a reduction in SO2 emissions overall.

Comments on the Draft Environmental Impact Statement for the Cape Wind Energy Project

2005-02-17T14:31:37Z

2. The DEIS conclusion of â��no adverse impacts to tourism and recreationâ�� is not supported by the data.

3. The DEIS conclusion that the project would not adversely affect property values is based on a flawed study, ignores other research, and is untenable.

4. The DEIS estimates of the value of health improvements are greatly exaggerated (at $53 million annually). Our own estimates show health improvements of $7 million, and even this may be overstated.

An Economic Analysis of a Wind Farm in Nantucket Sound

2004-05-15T16:31:08Z

Written by Douglas Giuffre, Jonathan Haughton, David Tuerck and John Barrett, this report analyses in economic terms the costs and benefits of a proposed 130 turbine wind plant in Nantucket Sound. It concludes that the economic costs substantially exceed the associated economic gains. This is a follow-up study to one published by Beacon Hill in October 2003 entitled "Blowing in the Wind: Offshore Wind and the Cape Cod Economy"

"Wind turbines don't make good neighbors"

2004-05-14T12:53:52Z

Researched and written by Eleanor Tillinghast of Green Berkshires Inc. this is a comprehensive study of the probable impact of industrial wind plants on the rural character, quality-of-life and economy of the Berkshires in western Massachusetts. Specific issues addressed include visual aesthetics, tourism, property values, public roads and public safety.

Blowing in the Wind: Offshore Wind and the Cape Cod Economy

2003-10-15T16:09:40Z

Written by Jonathan Haughton, Douglas Giuffre and John Barrett, this report addresses the prospective impact on the Cape Cod economy of 130 wind turbines in Nantucket Sound. The study includes the responses of tourists and residents to the aesthetics of the proposed project as well as the result of a survey among tourists on the degree to which the project would influence their desire to visit the area. The authors conclude that 'caution' is in order. A follow-up study entitled "Free but Costly" An Economic Analysis of a Wind Farm in Nantucket Sound" was published in March 2004.

Information lacking on wind power

2009-07-16T22:10:34Z

Performing a detailed feasibility study and siting analysis of wind turbine placement atop our Berkshire hills is dependent upon corporate proprietary information which could be purposely withheld (in restraint of trade) for fear that competition could gain an unfair advantage if it were divulged. Such a practice stifles competition from firms performing similar services ...but is particularly injurious to the industry which depends the most on the wise use of our land-based natural resources.

Cape economy needs loyal return visitors

2007-08-17T10:31:08Z

The ski industry is the "lifeblood" of northern New England precisely because it draws visitors eager to appreciate the rural splendor - and spend their money. While Cape Wind supporters often make hasty, anecdotal references to wind farm-related tourism in obscure European enclaves, the Cape's fickle, tourist-based economy relies on loyal return visitors - not curious one-timers. Just a small dip in tourist-related spending would result in thousands of lost jobs and millions of lost dollars.

From a Maine region that stopped the turbines

2007-05-31T12:08:19Z

As a tourist who visits the area, I notice what is transparent to most locals, and for me the skyline of Fairhaven is priceless. If the citizens of Fairhaven allow the wind power project to be built at the current proposed location, I believe you will be making a terrible mistake. The town may gain some money in taxes and offset some electrical energy costs, but it will not offset the loss in green space and, more importantly, the beauty of Fairhaven's historic charm.

Cape Wind and tabloid journalism

2007-05-31T11:19:43Z

In the Williams/Whitcomb world of tabloid journalism, there is no room for thoughtful discussion, for weighing costs against benefits, for understanding that self-interest is at work on both sides of the issue or for any kind of honest discussion. Such thoughts would get in the way of the facile thinking and cynical blather that fills their book and that is now commonplace on TV, radio and the Internet. Do you find yourself bored now that Don Imus and Rosie O'Donnell are off the air? Does the Internet no longer meet your need for trash talk? Then read this book. You won't learn anything substantive from it, but it'll be great entertainment.