IMPLAN I want to examine the construction of an oil pipeline covering 9 states comprised of 3 regions each region with 3 states; region A, B and C. We are trying to determine the impacts on each region A, B, and C as well as the impacts on the combined region of ABC. We have constructed our model based on a multi- regional “Bill of Goods Method” The following are the questions I have regarding this analysis. 1. The construction of the pipeline requires a Right-of-Way (ROW) payment to land owners to place the pipeline on their land. In the training video it states that land purchases should not be considered as an economic impact since these payments are a transfer payment and do not create economic activity. However, in this scenario the ROW payment is made not for the purchase of land but rather for the use of the land. For example, a farmer is generally paid for the ROW but will still maintain the ownership and use of this land; even in the event that the construction of the pipeline disrupts their seasonal crop the farmer will additionally be compensated for this disruption. In this case can we count this ROW within the multiplier analysis and if so which sector does it belong to? Possibly sector “360 Real estate establishments”? Also, how are royalties paid accounted for by the model? 2. The pipeline is to be constructed over 5 years with purchases occurring in each of the 5 years. Currently we are working in real 2010$. Is it fundamentally sound to sum the purchases and model them as if they occur at the same time? For example, if we know that the labor required for the construction of all the pipelines is $100,000,000 in 2010 $, then even though the projects are spread out over multiple years, can we model this as one event if we intend on leaving the currency in real dollars? 3. In regards to the multi-regional set-up: a. To account for the total impacts in the 3 regions I have constructed 3 models and have run 3 separate scenarios. The first scenario includes activities that occur in Model A with Models B and C included in Multi-Regional section, the second scenario includes the activities for Model B with Models of A and C included in the Multi-Regional section, and the final scenario includes the activities for Model C with Models A and B included in the multi-regional section. The total impact in any region will be the sum of the impacts in the region determined in the 3 runs. Is this method correct? Am I double counting or excluding any of the impacts? b. If I am looking at region A and have inputted Model B in the multi-regional section, it is correct that no assumptions made regarding a scenario in Model B are carried forward since it is in the multi-regional section of the model and not the activity section of the model? For example, in Model B within an event, if I input a labor LPP value of 10% this is not carried through when Model B is used in the multi-regional section of Model A? This is my understanding based on p. 208 of the User’s Guide. 4. Our approach is based on Bill of Goods method. Rather than just enter our total construction cost into a single construction category, we have divided our total investment expenditures into certain categories such as insurance, finance, pipe, R.O.W., and labor. We have created an event for each of these expenditures, assigned a sector and an industry sales value. Is this correct and will this approach capture all direct, indirect, and induced effects?
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