Contributions of Renewable Energy Industries to the Local Economy in North Dakota

Energy production in North Dakota is typically associated with fossil fuels, but in the past decade there has been considerable growth in renewable energy, which is comprised of ethanol production, electricity generation from wind turbines, and the manufacture of wind turbine components. Using expenditures data from renewable energy firms, we find that expansion of renewable energy infrastructure between 2002 and 2011 increased retail sales, personal income, employment, and total tax collections. Total economic impact associated with construction expenditures peaked in 2008 and 2009. In 2011 the total economic impact of the operations of renewable energy industries in North Dakota was $1.0 billion, two-thirds of which was contributed by ethanol production.