Regional economic output and employment impact of coal-to-liquids (CTL) industry in China: An input–output analysis

This paper describes the effect of the coal-to-liquids (CTL) industry on economic output and employment in four Chinese regions. The operation of CTL projects require large amount of expense and thus can largely boost regional economy growth by expanding local output demands. However, such economic benefit has never been quantified. In this paper, we evaluate the economic effects of CTL projects in regional China by performing a multiplier analysis with the latest 2007 China regional input–output data. Our analysis shows that CTL projects can greatly boost economic output and employment in regional China. A Direct Coal to Liquid (DCL) project that produces one million tons of fuel every year can increase regional economic output by 0.78%–2.76% and employment by 1.10%–3.15% annually.

► The boost effect of CTL on regional economy is significant.
► One dollar spent of CTL can generate 3.48–3.54 dollars of increased output in provincial economy.
► Region distinction affects the economic effect of CTL considerably.
► Direct coal-to-liquid projects can increase regional output by 0.78%–2.76% and employment by 1.10%–3.15% annually.