One of the group suggested that would be explored in more detail the effect of the cable on the

In late June resulted advisory group of industry and commerce findings and recommendations concerning the electricity cable to Europe. oaks mall gainesville The advisory group sat around 15 members, including the signing. Solidarity became the panel but we summaries experts on economic, social and environmental dimensions of the project.
One of the group suggested that would be explored in more detail the effect of the cable on the "number of jobs [domestic] and their value." oaks mall gainesville The concern there is whether the jobs that are based on heavy industry, directly and indirectly, would disappear as industrial oaks mall gainesville power contracts expire in the coming decades, oaks mall gainesville if the submarine cable was laid.
Is indeed the right thing to approach this challenge out of work as such but on the domestic oaks mall gainesville value added. If the added value created domestically and benefits distributed fairly effectively with the economy the spout automatically work to meet increasing consumer demand for goods and services. If the added value created without the need to produce aluminum and ferrosilicon then take advantage of the resources that demanded production, labor, time and material, to meet other needs of the population. It is good and desirable.
You can analyze the value and benefits of energy-intensive industries such as aluminum production, with in-depth research and economic thoughts. But it is also possible to see the main features of the image with the help of simple calculations that can fit on the back of an envelope.
Aluminum exports from Iceland amounts present 225 billion annually (2012). Imports of raw materials for the production of aluminum, alumina, carbon anodes, etc., has in recent years rokkað around half of the export value. Therefore it can be assumed that the smelters produce positive "trade balance", or gross domestic added value, of approximately 110 billion in foreign currency. Part of the amount actually goes back out to foreign owners aluminum companies in the form of dividends, interest and principal payments on loans, but we can ignore it in this broadly. The rest goes to the purchase of electricity, to the payment of wages and the purchase of supplies and services, and taxes and other costs.
Aluminum using a total of over 13 million megawatt hours per year of electricity. With a simple division shows that national gross value added of each megawatt hour used in the smelting of aluminum is of the order of 8,000 crowns, the equivalent of 50 euros. Of these, about 20 euros purchase electricity transmission costs, and 30 euros are another added value that will be here.
This means that if the price of electricity that deals with the delivery of a submarine cable is 50 euros per megawatt hour or higher, should be illuminating for the economy to sell energy the way without worrying about loss of jobs in aluminum production in the future.
Of course, here is a variety of interests. For example, would be sold amount to be sufficient to transport a larger investment in submarine cable, and the average price would be over a long time. On the other hand, the price would in fact not reach 50 euros for exports is favorable but sales to industry, where evrurnar stuck "net" into the economy without driving needs or kísilver plant with associated cost, use and environmental release. Then there is of course basic to the resource rent, margin from the sale of submarine cable, would be distributed effectively, for example by resource rent rates and the corresponding reduction in taxes on people and businesses (and / or subsidies on electricity that is economically inferior method).
The report of the Institute of Economic Studies (HHI), which is part of the balance of power ICB string discusses the likely energy in the UK in the future. Where is calculated using three scenarios that are based on forecasts of British parties for the years 2020-2030. These scenarios range from 94 to 130 euros per megawatt hour "net" into the submarine Bank side, the price level of 2013. Assumptions discrepancies are further substantiated in Appendix 1 to the report oaks mall gainesville HHI and will not go further into the hymns here.
So: If assumptions HHI on the power pass is obviously more efficient to transmit electricity through the submarine cable and use it for domestic production of aluminum (select if needed in between). The data available so that large errors would be grounds to change the result.
The good news is then as follows: If 5 terawatt hours will be exported oaks mall gainesville per year in the future (according oaks mall gainesville to criteria HHI) at a price of EUR 100 per megawatt hour, and the cost of the energy equivalent of 20 per megawatt hour (which is accurate in round figures), the net margin of exports in word 400 million a year, equivalent to 64 billion. It is equivalent to the example of two thirds of all general income tax in 2012. (And possibly higher domestic energy prices is a drop in the ocean compared to these numbers.)
17.7 2013 @ 21:03
Why would he "never oaks mall gainesville used to lower income tax"? I project