COVID-19 Vaccine Expected to Generate $32.2 Billion Economic Impact
HUNTERSVILLE, N.C., Dec. 11, 2020 /PRNewswire/ -- An economic impact analysis from IMPLAN Group has found that the level of production of the COVID-19 vaccine required to reach herd immunity would generate $32.2 Billion in nationwide economic impact.
IMPLAN Group LLC, the leading provider of economic impact data and technology, has performed an economic analysis of the manufacturing of the COVID-19 vaccine in order to determine the impact of the government's investment in the production process. Using data from the U.S. Department of Health and Human Services (HHS) and the Biomedical Advanced Research and Development Authority (BARDA), input values were established for the production cost and number of vaccines required to achieve herd immunity.
Through Operation Warp Speed the Federal Government has pledged support in the effort to deliver 300 million doses of COVID-19 vaccine. The production cost of the vaccine averages $46 per person. In order to achieve herd immunity, 70% of Americans (approximately 229 million people) must be vaccinated. At these rates, the Fed will invest approximately $10,664,620,000 into production. An economic impact analysis was performed with this industry output value in IMPLAN and estimated a total output of $32.3 billion.
Economic impact analyses estimate the ripple effects that a change in a given industry's activity has on interdependent industries. Economic impact totals include the economic activity of the analyzed industry, the businesses supported in their supply chain, and the effect of the household spending of labor income earned in each layer of the activity. IMPLAN's analysis found that the investment in vaccine production would support a total 88,179 jobs and $6.9 billion in labor income.
All economic impact figures result from an analysis-by-parts performed in IMPLAN V.5 Data year 2019. Results do not take into consideration any associated opportunity costs.
Check out our blog for a comprehensive look at the results of this analysis and caveats and considerations for setting up this research.
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SOURCE IMPLAN Group