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A Local Income and Employment Multiplier Analysis of a Proposed Nuclear Power Station Development at Hinkley Point in Somerset

School of Planning, Oxford Polytechnic and Director of the Power Station Impacts (PSI) Project

Dominique van Der Wee

Regional Policy Directorate of the European Commission

Brendan Barrett

University of Kyoto

Nuclear power stations have a range of local economic implications for their host localities; some direct through local employment on the development, others more indirect resulting from the filtering through into the local community of income and expenditure. This paper focusses on the indirect effects, using a disaggregated dynamic multiplier approach. The case study used is that of the proposed Pressurized Water Reactor (PWR) nuclear power station development at Hinkley Point in Somerset, England. The analysis highlights the significance of the indirect effects and the importance of disaggregation by expenditure category and over time. A particularly important distinction is that between the indirect effects associated with the construction stage of the development and with the operational stage.

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