Analysis: Costs Total Over 78,000 jobs, $7.6 billion in GDP
A new analysis from the U.S. Chamber’s Institute for 21st Century Energy reveals that blocking northeast pipeline projects would impose major costs across New England and mid-Atlantic states. Those costs total over 78,000 jobs and $7.6 billion in GDP by 2020.
The Chamber asks the question: “What if pipelines aren’t built into the Northeast?”
Researchers find that the inability to get new energy infrastructure projects permitted in the region could impact Pennsylvania by the loss of nearly 22,000 jobs and $2.4 billion in lost state GDP, and the loss of more than 11,000 jobs and $1.2 billion in GDP for New Jersey.
The economic impact analysis in the Chamber’s report estimates the potential impacts over the next 4 years, and includes all recently announced pipeline projects, including the PennEast Pipeline.
To estimate economic impacts, the report uses publicly available economic data from announced pipeline projects, energy demand forecasts, and announced retirements of nuclear generators.
High Energy Prices: “Costing Region Jobs, Income, and Causing Pain”
“Residents in the Northeast are paying the highest electricity rates in the continental United States, with no relief in sight if infrastructure is not built,” said Karen Harbert, president and CEO of the Energy Institute. “High energy prices are costing the region jobs and income, so maintaining the status quo will be painful.”
Despite sitting adjacent to one of the world’s greatest reserves of natural gas, the report highlights that New York has the eighth highest electricity rates in the nation, and New Jersey is tenth.
“As the regulatory and price environment continues to encourage the use of natural gas, Northeast states will find themselves increasingly starved of the energy needed to power the economy and keep the lights on,” said Harbert. “Our analysis demonstrates that there is simply not enough capacity to meet demand, and families, consumers, and businesses will all pay the price.”