By Yessenia Funes - Yes! Magazine, March 15, 2016
Our lifestyle is inextricably linked to fossil fuels. We pay the industry to heat our homes and power our cars. Though driving might be optional where public transit is available, heat is not during harsh winters. We know about the effects on the climate of burning oil, gas, and coal for energy, but we don’t know what turning our backs on them will do to our economy. Some worry that closing our oil refineries and shutting down our mines would throw the market into a dangerous vortex. That doesn’t need to be the case. A successful energy transition could actually benefit the economy and reduce inequality.
The economy relies on a number of things, including spending, manufacturing, trade, and personal income. The availability of fossil fuels has largely driven these for 150 years. “[Oil] is the world’s first trillion-dollar industry in terms of annual dollar sales,” environmental author Jack Doyle wrote in 1994. In North Dakota, a major oil- and gas-producing state, an oil boom created the $53.7 billion gross domestic product the state sees today.
But booms often have downsides. When the journal Energy Economics compared six states that produced the vast majority of the West’s crude oil and natural gas, it saw per capita income decrease by as much as $7,000 in counties whose incomes relied most on such development. Also, the crime rates and percentage of adults without a college education increased in those counties. The study offers possible explanations, including an increasing reliance on nonlocal workers and changing wage structures.
The oil and gas industries are the largest industrial sources of volatile organic compound emissions—2.2 million tons a year. These chemicals cause smog, which can increase the risks of asthma and premature death. The industry also produces cancer-causing pollutants: benzene, ethylbenzene, and n-hexane, which are emitted during the refinement process.
Low-income communities of color disproportionately bear this health burden and are also least likely to have access to health care, including preventive medicine, checkups, and prescription drugs. The inequality of care only widens the income gap by adding more financial pressures to an already stressed group.
What about jobs? Extractive industries currently employ nearly 200,000 Americans and pay some employees as much as $42.90 an hour. These jobs are a valid concern. The U.S. unemployment rate is finally down to about 5 percent. Surely we don’t want all those people put out of work.
That won’t happen if we launch the renewable energy sector in sync. Economists at the University of Massachusetts Amherst’s Political Economy Research Institute (PERI) have studied this topic since the early 2000s. Their research shows how a transition to renewables can lead to a post-carbon world and a fairer economy.