Economic, Social, and Environmental Impacts of Controlled Environment Agriculture (CEA) Production in the United States: An Input–Output Analysis Approach

The United States food system is highly centralized and heavily reliant on production and distribution methods that have significant negative environmental and social externalities. Soilless Controlled Environment Agriculture (CEA) has the potential to decentralize food production, move it closer to consumer markets, and reduce some of the negative externalities of conventional agriculture. Yet, surprisingly, no substantial body of research has comprehensively assessed the integrated economic, social, and environmental impacts of CEA. We present a methodological approach using input–output analysis to compare the direct, indirect, and induced effects of CEA and soil-based production of fruits and vegetables. Our modeling results illustrate the potential of CEA production to generate jobs, income, and net taxes through sectors of the economy connected to its supply chain. Our results further suggest that CEA production is associated with lower land use and water withdrawals, as well as nitrogen, phosphorus, and pesticide releases, compared to soil-based production. However, a potential downside is the higher greenhouse gas and air emissions, chiefly due to the energy needs of CEA production. The overall impact of increased CEA production must be further assessed to capture both its benefits and potential trade-offs.