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HomeMy WebLinkAboutSubmittal-Presentation-Formula E Electric Car Racegesek al -/a _ Grmu/a Elecir i c Car gac q4 Formutae CHRMPIOII SHl P Formula E Championship Racing for an electric future The opportunity for Miami SUBMITTED INTO THE PUBLIC RECORD FOR ITEMD2.j. ONothgfoi.. El ERNST & YOUNG Quality In Everything We Do Formula E Championship Racing for an electric future The opportunity for Miami SUBMITTED INTO THE • PUBLIC RECORD FOR TEMDON othg/203. P1 rt -p O C g O 3 o `^ a 3 a v O_ IN 3. • o o = 3 3 3 0 Fs N r 'P 0 IV=�o a, 0o 3' Formula E can contribute to a global value creation an Miami can be a part of it* r Green Growth additional EVs sold 77 million** $ 550 billion for consumers savings (NPV)fuelenergy extra sales in the car industry 42,000 permanent jobs f Page 2 $ 181 billion created in the car industry LOCAL '! im_pact 1 • SPONSORS 1 $ 194 billion Social • Savings on healthcare costs from pollution reduction Significant quality of life improvement in cities $ 750�'� `.billion ," Global value creation Average $10 million of visitor spending per event 240 jobs per event +25% community pride increase Green image New market niches Brand visibility FIA Formula E Championship — The opportunity for Miami ( Environmental 4.0 billion oil barrels saved (2.5 years Japan's current consumption) avoided (2 years of Italy's annual emissions) $ 17.7 billion 900 million tonnes of CO2eq saved on CO2 costs (NPV) All the data showed in this document is obtained as a result of Ernst & Young calculations, which are based on: - Public available data, - experts research studies, - Ernst & Young internal methodology. For a low scenario analysis JERNST&YOUNG Quality In Everything We Do 1. Introduction. Local short-term and Tong -term externalities: Opportunities for Miami Traditional event 1 impact 1 measurement ; • $10 million spent per event by visitors • $2.6 million of tax collection. • About 240 FTE jobs generated. $10 Million Page 3 • Long-term economic impact • City attrac- tiveness • Increase in visitors. • Eco-tourism GDP& Taxes • Income effect • Increase in economic activity • Employment Business R&D Waste • Decrease in waste generation • Increase in recycling and reuse Water • Water savings • Water quality Energy improvement Emissions and air quality • Emissions savings • Air quality improvement 1 Environmental• 1 I value • Renewable energy development • Energy efficiency improvement • Decrease in energy consumption • Creation of business dusters • Educational • Investment Edu programs attraction •cation • Research • More than 25% • Highly skilled rise in the labor force communitypride •• Technology Sustainable • Political support Social lifestyle development • Positive feedback • Increase in Infra - welfare quality of life structure City • More than $6 • Purchasing image million power contribution to • Urban the city image • Positive renewal and reputation. Social feedback $3$ Political awareness • Change in impacts • Policy creation lifestyle $40- M/yr • Political support 50M in fr Social value Pride FIA Formula E Championship — The opportunity for Miami 5yr J ERNST & YOUNG Quality In Everything We Do rD —1 3 D. o N 0 0 co w 2.1 Local economic externalities. Short-term and Tong -term externalities GDP & Taxes Employ- ment Revenues City attractive- ness Short-term externalities Xes Employ- $2.6 million 240 FTE jobs nues $10 million City attrac t'ven,• Long-term externalities 14,000 non- residents FE generates economic activities far beyond the event's organization, The expenditure on one event would generate about 2.6 million $ of tax collection in the case of Miami. 1 The total increase in economic activity improves employment. The expenditure on one event would generate about 240 FTE jobs in the case of Miami. 1 We estimate that a total of $10 million would be spent in one Formula E event in Miami -Dade County by visitors, media, officials, teams and other related organizations or corporate buyers, for the benefit of local businesses. 2 FE event will attract tourists that visit the cities in order to attend the event. We estimate that the FE event organized in Miami can initially attract 25,000 unique visitors, being about 56% of them non-residents.3 1 According to Americans for the Arts, Arts and Economic Prosperity III, The Economic Impact of Nonprofit Arts and Culture Organizations and their audiences, 2007. 2 Supposing that the consumption behavior of Australian Grand Prix attendees (The Guardian, Earth Car or not, Button will emit over 50 tones of CO2 this season, Friday 2 March 2007) is similar to the one of FE, and adapting Australian Dollar exchange rate and Price Index to the United States (OECD, August 2, 2012). 3 Conservative approach based on the Australian Grand Prix figures (Ernst & Young, Tourism Victoria, The economic impact of the 2011 Formula 1 Australian Grand Prix, July 2011). Page 4 24 24 m City "IT, attrac- veness Investment Business R&D GDP & Taxes The "income effect" generates a superior household spending resulting from the higher level of production. This increase the economic activity in the long term, that creates employment and improves tax revenues. In the long term, FE will indirectly encourage the creation of business clusters that will promote the development of a local high -skilled labor force and the development of specific Business, technologies locally available (taking as examples the R&D clusters UK Motorsport Valley® in Northamptonshire and Oxfordshire, and the Italian Motor Valley in Modena area). GDP & Taxes FE will attract investment mostly in the long term through the development of research and business clusters, particularly focusing on cutting -edge mechanical, Investment management and electrical engineering as well as fluid mechanics. The long-term contribution of FE would be modest at best. It is hardly conceivable that Formula E would become a key reason for visiting large cities with many tourist attractions. FE can contribute towards the long-term "greening" of the hosting cities' image, especially those spreading a generally negative environmental perception and therefore attract eco-tourism. City attractive- ness FIA Formula E Championship — The opportunity for Miami Ili ERNST&YOUNG Quality In Everything We Do n a a�a+ a"a - a_ Iv r N O7D CO ' On 0. = 7 —. 3 7 3 0 (D O 3 N rt.- O N CO O i r 2.2 Local economic externalities. Short-term increase in GDP, employment, and tax collection Direct local economic impact Economic activity from event organization Spending from visitors (e.g. lodging, restaurants, transports, ...) Indirect local economic impact Increased intermediate spending from producers Income effect through increased household spending Increased tax revenue for local, regional and national government Brazil's example World Cup 2014 Miami case: Estimated economic benefits from spending from visitors (lodging, restaurant, transport, retail) Page 5 $ 31 billion for the population in the period 2010-2014 3.63 million jobs, 3/ of benefits from indirect economic impact $ 9 billion tax collections 25,000 unique visitors (Australian F1 GP: 109,234) 11,000 county residents and 14,000 non-residents $ 10 million spent FE event visitors in Miami -Dade County 240 FTE jobs $ 550,000 in local tax revenue $ 2,050,000 in state and federal government tax revenue FIA Formula E Championship — The opportunity for Miami J ERNST & YOUNG Quality In Everything We Do uouueH '9 PPol Et-8Z-ZO uo rza sluali CD O n O cr a3 3' 0- 0 • • 5 3 B. fD O • rD 3 v i = _. -_ 3. n• 2.3 Local economic externalities. Example of long-term development of local clusters and attraction of global investment Sectors which contribute to the growth of local clusters The example of 2 regions whose R&D and economy have benefited from racing competitions Page 6 Manufacturing Local Cluster Animation & Communication Education ein 25,000 qualified engineers 4,500 SME $ 9.2b turnover (60% exported) 30% of sales turnover spent in R&D Tourism Hobbies Motorsport Valley® FIA Formula E Championship — The opportunity for Miami Hosting cities will have the opportunity to attract investments through the creation of local clusters The success of the existing clusters is mainly based on two major strategic assets: • Local high -skilled labor • Specific local technologies I I Motor Valley Over 35,000 local employees 5,000 SME 11 major international investors $ 19.9b in exports (2008) JERNST&YOUNG Quality In Everything We Do UOUueH '9 PPol ET-8Z-ZO uo rza suaali "r; n c O � Q 3 CD Or' O- 5. 3.1 Local social externalities. Short-term and long-term externalities be r+ r+ om � Short-term externalities Social awareness Social Welfare Community'. Pride City image Socia welfa- re Social aware- ness City image FE will demonstrate the high performance of EV's, communicating the environmental issues linked. Inhabitants will be directly impacted by the message. During the event, there would be a minor disruption of the local welfare (incidents, overcrowding, congestion, noise, a potential decrease on the environmental quality...). Community pride would increase by more than a 25% perceived. FE will encourage the population's implication through volunteerism, increasing the sense of belonging. Locals will be proud of its city hosting such an event, specially for being the first one having a sustainability component. The influence would be higher if the city hosts the opening or the closing race, and if the city hosts a race during the next championship, or if it turns into a global reference of the FE championship. FE race will make the city more visual to the public and therefore link the image of the city to and sports event, a green city, attractive for tourism and technology research. If the organization of the event is perceived as well managed by the host city, its positive image will increase. Ernst & Young estimates that FE will contribute by more than $6 million in building the city image and reputation. Page 7 Long-term externalities Social welfare City image Social awareness Infra- structu- re Political impacts The long-term impact will be higher, due to the positive feedback generated by the event and the change in the lifestyle of residents. Raising the environmental awareness leads to a change towards a sustainable lifestyle, increasing the quality of life of locals (less environmental impacts, more EV, etc.) If the city keeps on hosting FE races and the local feedback of the first race is positive, the pride will be higher. The impact on the city image will be higher in the long term as the green image will settle with time. FE would become part of a reputation -enhancement strategy, aiming to show initiatives towards Cleantech research, infrastructure improvement, and environmental protection. The event transforms in a significant way the interest of people and especially students on the EV and sustainability. There is a possibility of an urban renewal happening in the long-term in the host city (a more conscious society will demand the creation of "green" neighborhoods or eco/smart-buildings, etc.). Locals will demand a political support and the creation of policies linked to EVs, renewable energies and sustainability. FIA Formula E Championship — The opportunity for Miami Social awareness welfare Community Pride pity Image Education Infrastructure Politica, impacts J ERNST & YOUNG Quality In Everything We Do 3.2 Local social externalities. Raising awareness from a local to a global dimension The objective is to increase the population awareness about environment and sustainability through the different forms of the social legacy: Improved image of the cities hosting the Formula E Gains in education and training provided by the competition's experience and temporary jobs Social inclusion of underprivileged youngsters and elderly people under volunteering programs Activities oriented towards environmental issues and sustainable development Improvements obtained with investments in health and safety Miami rt-,vl O rD O n N i 3 o n Iv °_-.7 a- NI3. tD co O O a = 3 3 = cu N ^ 1,000 volunteers for FE Spectators directly Tourists and locals People following the '` o NJ a. fD interested in the attracted bythe competition through 7 -O 1,000 for side events p g CD W Cr competition competition different media Volunteers 2,000 Tourists and local 200,000 Global Audience 300,000,000 2040 S ri Page 8 FIA Formula E Championship — The opportunity for Miami J ERNST & YOUNG Quality In Everything We Do 4 !M uoipaUUOD ui p.103a.i D!Ignd a41 mu! pawwgns 4. Local environmental externalities. Measuring local externalities over the long-term: Environmental .1•izTas.�Kx� Short-term externalities Noise Emissions and air quality Nal .r Long-term externalities 433 412 Emissions and air quality Emissions \ Hosting the event itself will cause the emission of CO2 due and air to transportation, the spectators, etc. Also the air quality quality will decrease due to the emission of particulate matter. Hosting the event will increase the energy consumption Energy locally. The event will generate a higher amount of waste coming Waste from the event itself and the spectators attending to it. Water Noise FE race will raise the local water consumption (by a attendees and the water consumed for staging the event). Also there will be a decrease of the local water quality due to pollution and discharges. Hosting the event can cause a raise on the generation of noise due to overcrowding, traffic, and so. It is important as it can cause a disruption of the quality of life on locals during the event. Page 9 ■ a dd a » As a consequence of the social and political awareness towards sustainability generated by FE race, there would be emission savings due to an improve of the efficiency, the development of the local EV market and renewable energies and higher energy efficiency. In the long term the local energy consumption will decrease due to social awareness. Also there would be an improvement on the energy efficiency in the city and a promotion of green energy sources. A potential change in the lifestyle of the communities linked to a raise of the social awareness would lead to an increase on the recycling habits and a decrease of the waste generated.. in the long-term, the competition could generate water savings and an improvement on the quality of local water resources as a consequence of a social awareness linked to its consumption and conservation. FIA Formula E Championship — The opportunity for Miami Emissions and air quality Energy Waste Water J ERNST & YOUNG Quality In Everything We Do roc- Yellow zone Formula E M IAM I TRACK V3 V3=V1+ARENA LENGTH : 2900M Date des tmayes satellite 17 3120111