A number of factors have contributed to the rapid growth of wind power capacity in Illinois from 50 MW in 2003 to 3,334.91 MW in 2012, including: federal and state policies, energy security, energy costs, environmental benefits, economic development opportunities, and state-specific factors. One key policy driver in Illinois was the passage of the Illinois Power Agency Act in 2007, which included a renewable portfolio standard of 25 % by 2025, 75 % of the renewable energy resources employed to meet the renewable portfolio standard were designated to wind energy. This study analyzes the economic impacts from the 23 wind projects in Illinois that exceed 50 MW of capacity. These wind projects account for 3,334.91 MW or 99 % of the state’s wind energy generating capacity. Using the JEDI input-output model, the 23 largest wind farms in Illinois created approximately 19,047 full-time equivalent jobs during construction periods with a total payroll of over $1.1 billion. In addition, approximately 814 permanent jobs in rural Illinois areas with a total annual payroll of nearly $48 million are supported. Furthermore, wind farms generated roughly $28.5 million in annual property taxes for local economies as well as $13 million annually in extra income for Illinois landowners who lease their land to wind farm developers. The lifetime total economic benefit of the 23 wind farm projects is estimated at $5.98 billion.

February 2, 2016

What is the Economics of Wind Hazard Mitigation?

Pataya Scott, Daan Liang

Page range: 25-29

Abstract

Tornadoes, hurricanes, and other extreme winds cause deaths, injuries, and millions, if not billions, of dollars in damages every year in the United States. Mitigation is necessary to reduce the loss of life, anxiety and suffering, and economic losses. But how much are people willing to invest in their peace of mind? Policy makers typically use the range of $1 million to $10 million per life saved to determine whether a policy that would save lives should be implemented. Individuals have shown that they are willing to pay more for homes with upgrades for mitigation and safety even though they would have no insurance incentive and it is likely that the added cost only affords them peace of mind.

January 22, 2016

Windstorm Price Effects on Construction Materials

Kevin M. Simmons

Page range: 31-36

Abstract

Windstorms can leave massive damage as they march across a helpless region. As population increases in areas prone to windstorms, damage only escalates. Most economic impacts are local but some storms are large enough to create ripple effects felt thousands of miles away. This paper examines one such storm, Hurricane Andrew, and the effect it had on a common construction material, plywood. It finds that the national price of plywood increased sharply after Andrew with no explanation other than the hurricane itself.

January 22, 2016

Financial Hedging the Risk of Hurricanes

Yuepeng Cui, Bradley Ewing, Daan Liang

Page range: 37-43

Abstract

Each year, hurricanes cause massive amounts of damage around the world. The losses caused by hurricane exceed insurance company’s capacity. This paper focused on analyzing the current financial product in the market which could help transfer the hurricane risk. At the last, the author proposed to develop Hurricane Resiliency Index, it could serve as a key basis to measure the capacity of a community to withstand, respond to, and recover from hurricanes.

January 19, 2016

State of Knowledge of Economic Value of Current and Improved Hurricane Forecasts

Daniel Sutter, Bradley T. Ewing

Page range: 45-64

Abstract

This paper surveys the literature on the value of current and potentially improved hurricane forecasts from the National Hurricane Center. Research on the societal impacts of hurricanes demonstrates that forecasts are likely generating substantial benefits to society in a variety of uses, including saving lives in the U. S. and across the Carribean and Eastern Pacific, reducing the cost of evacuations, improving supply chain management, and in the transportation and energy production and distribution sectors. The existing literature, however, fails generally to quantify the benefits with rigor sufficient for an academic quality benefit-cost analysis of hurricane forecasts. The paper offers several suggestions for future research to more precisely estimate the benefits attributable to current or improved forecasts.

About this journal

Objective
The Journal of Business Valuation and Economic Loss Analysis (JBVELA) is a refereed academic journal that publishes continuously throughout the year and is co-edited by Bradley Ewing and James Hoffman. The mission of the Journal of Business Valuation and Economic Loss Analysis is to improve the practice of business valuation, economic loss analysis, and risk management by helping to inform academics, practitioners, and attorneys about theoretical and practical developments in these fields.

Topics

business valuation
economic loss analysis
risk management

Article formats
Research articles
The journal publishes three categories of manuscripts. The first category encompasses both empirically- and conceptually-based manuscripts that advance the fields of business valuation, economic loss analysis, or topics related to risk. The second category of manuscripts focus on the description of how theory has been put into practice, including case study examples. The third category of manuscripts concerns how recent rulings and changes in the law affect business valuation, economic loss analysis, and risk management practices, assessment, and analysis.

> Information on submission process