The socioeconomic significance of the A/S Dansk Shell oil refinery in Fredericia Municipality

Authors: Anne-Mette Nielsen and Nino Javakhishvili-Larsen This project aims to clarify the significance of the A/S Dansk Shell oil refinery in Fredericia for the local, regional, and national economy. The findings in this report demonstrate that the oil refinery in Fredericia has a significant impact on the surrounding economy. The direct effects of the refinery's activities generate substantial ripple effects throughout the rest of the economy. With an employment multiplier of 7.98 and a value-added multiplier of 5.91, it is evident that the direct activities at the Fredericia oil refinery create important socioeconomic benefits for the rest of the Region of Southern Denmark and the country as a whole. The direct activity at the Fredericia oil refinery leads to positive spillover effects for the entire national economy. In summary, the analysis shows that the activities of the A/S Dansk Shell oil refinery create a total of 958 jobs in Fredericia and an additional 1,038 jobs nationwide. The refinery also generates a total value added of DKK 1,637 million, of which DKK 674 million accrues to Fredericia Municipality. In total, the A/S Dansk Shell oil refinery generates tax revenue of DKK 666 million nationwide.