Quantifying the benefits: Energy, cost, and employment impacts of advanced industrial technologies

This development effort was supported by the Technologies Partnerships Program established through the US Department of Energy's Office of Energy Efficiency and Renewable Energy via the Office of Industrial Technology (OIT). This program supports research, development, and demonstration of industrial technologies aimed at improving energy efficiency and productivity while reducing pollution, material waste, and operations/maintenance costs. The goal of this program is to develop cost-shared partnerships with industry, government and non-government organizations to foster improved efficiency, productivity, and pollution prevention technologies. This partnership program is believed to be one way that energy efficiency will be delivered to industry in the 21st Century. This paper reports on the development of the Industrial Technology Employment Analysis Model (ITEAM) which calculates economy-wide employment impacts of specific partnership program technologies, using data developed by the technology partner. ITEAM is a desk-top computer model that allows users to evaluate base-case partnership data and/or run sensitivity tests using its graphical-user-interface features. To demonstrate the capabilities of ITEAM, an analysis is presented for the chemicals industry. In addition, the following major industries have been analyzed and summary data are presented: aluminum, stone/clay/glass, forest products, chemicals, metal casting, steel, and petroleum. This paper addresses the development, function, andmore » use of ITEAM. Included is a presentation of key assumptions along with user inputs and a discussion of sensitivities. The results of ITEAM runs for over 20 technology projects in 7 program areas are reported. The paper also explains how the project data are used to modify the 1987 I/O table to impact output and employment. The calculations are explained and the approach is rationalized. The argument for this approach rests on the proposition that improvements in efficiency reduce costs and increase the well being of the entire economy.« less