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Stevenson Center, biodiesel


The production of biodiesel in the United States has expanded greatly in recent years. A factor contributing to the growth of this industry is the perception that renewable fuel production is an economic boon to state and local economies, particularly those of rural areas. This study estimates the economic impact of biodiesel production in the state of Illinois. Through input-output analysis and by simulating the industry using IMPLAN, the impact of a 10 million gallon per year plant using soy oil as its only feedstock is modeled. The estimated effect on output, employment, and other parameters is substantial. However, the results also demonstrate that the magnitude and nature of this impact is heavily reliant on the feedstock used in production and that the choice of feedstock can limit the economic gains in rural localities.

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