Propane Industry Impact on U.S. and State Economies
The propane industry is an important contributor to the U.S. economy. In 2012, propane could be found in nearly 50 million American households where it is used for primary or secondary space heating, cooking, clothes drying, or grilling. 5.5 million homes rely on propane as their primary heating fuel. The propane industry also delivered energy to more than 800 thousand commercial customers, 200 thousand agricultural customers, and 200 thousand industrial customers, and provided fuel for about 140 thousand vehicles, all of which contribute to U.S. Gross Domestic Product (GDP) and employment.
The Propane Education and Research Council (PERC) retained ICF International (ICF) develop a study examining the propane industry’s impact on U.S. and State economies. PERC, the National Propane Gas Association (NPGA), and ICF worked together to develop the study. ICF’s analysis evaluates the GDP contribution of each segment of the propane industry at both the national and state levels. An added emphasis in this value chain analysis is the disaggregation of domestic, North American, and imported sources in the value and volume of odorized propane.
This value chain analysis calculates the value added, employment, and wages for 2012 — the latest year for which the full set of input data required for this study is available.