Input-Output Models

In addition to direct economic impacts, clients are often interested in understanding how policies or decisions indirectly impact local, regional, or national economies. EES Consulting provides clients with estimates of regional economic impacts resulting these policies or decisions using input-output modeling. Input-output models depict the inter-industry relationships within an economy. The models estimate the total effect of additional dollars spent or lost in a local economy using a series of region-specific multipliers. Input-output models demonstrate how dependent each industry is on all others in the economy both as a customer of outputs and also as a supplier of inputs. EES Consulting uses input-output models available at state and county levels in order to estimate the direct and indirect effects of changes in regional income.

Chelan County PUD

Chelan County Public Utility District (PUD) has invested in fiber to the home (FTTH) infrastructure for most residents in Chelan County. While most residents and businesses currently have access to fiber connections, the PUD was faced with the decision of whether or not to continue investments so that all customers could be connected to the fiber network. In order to evaluate the estimated infrastructure costs, the PUD asked EES Consulting to prepare a benefit-cost analysis of the current and proposed expansion. EES Consulting evaluated the social and economic benefits of the public fiber infrastructure which included rate reductions and service improvements. The benefit estimation included input-output calculations in order to capture both the direct and indirect impact of the public fiber system on the local economy. The results of the study were presented at a public meeting where the PUD commissioners could receive feedback from stakeholders and make a decision about further fiber network investments.

City of Bethel

The City of Bethel in Alaska asked EES Consulting to assist in evaluating ownership structures of the electric utility providing service in their community. The current model was a private ownership model and the City wished to evaluate the pros and cons of alternative ownership including a city-owned electric utility. As part of the ownership analysis, EES Consulting conducted an input-output analysis for any cost savings to the community under public ownership structures.