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Appalachia's Natural Gas Counties: Contributing more to the U.S. economy and getting less in return

By Sean O'Leary - Ohio River Valley Institute, February 12, 2021

Economists debate whether there is such a thing as a “resource curse”.

Between 2008 and 2019, twenty-two old industrial and rural counties in Ohio, Pennsylvania, and West Virginia, which make up the Appalachian natural gas region, increased their contribution to US gross domestic product (GDP) by more than one-third. In 2008, the 22 counties were responsible for $2.46 of every $1,000 of national output. By 2019, the figure had climbed to $3.33. Their rate of GDP growth more than tripled that of the nation. However, during the same period, measures of local economic prosperity—the economic impacts of that growth—not only failed to keep pace with the increased share of output, they actually declined.

  • The 22 counties’ share of the nation’s personal income fell by 6.3%, from $2.62 for every $1,000 to just $2.46.
  • Their share of jobs fell by 7.6%, from 2.62 in every 1,000 to 2.46.
  • Their share of the nation’s population fell by 10.9%, from 3.26 for every 1,000 Americans to 2.9 for every thousand.

It is a case of economic growth without prosperity, the defining characteristic of the resource curse.

Most of the GDP increase in this group of counties was due to the Appalachian natural gas production boom, which was facilitated by the advent of a drilling technique called hydraulic fracturing, or “fracking” for short.

Read the text (PDF).

Costs and job impacts of Green Recovery and Just Transition programs for Ohio, Pennsylvania

By Elizabeth Perry - Work and Climate Change Report, November 2, 2020

Impacts of the Reimagine Appalachia & Clean Energy Transition Programs for Ohio: Job Creation, Economic Recovery, and Long-Term Sustainability was published by the Political Economy Research Institute (PERI) in October, written by Robert Pollin and co-authors Jeannette Wicks-Lim, Shouvik Chakraborty, and Gregor Semieniuk. To achieve a 50 percent reduction relative to 2008 emissions by 2030, the authors propose public and private investment programs, and then estimate the job creation benefits to 2030. “Our annual average job estimates for 2021 – 2030 include: 165,000 jobs per year through $21 billion in spending on energy efficiency and clean renewable energy; 30,000 jobs per year through investing $3.5 billion in manufacturing and public infrastructure. 43,000 jobs per year through investing $3.5 billion in land restoration and agriculture. The total employment creation through clean energy, manufacturing/infrastructure and land restoration/agriculture will total to about 235,000 jobs. “ 

There are almost 50,000 workers currently working in the Ohio fossil fuel and bioenergy industries, with an estimated 1,000 per year who will be displaced through declining fossil fuel demand. As he has before, Pollin advocates for a Just Transition program which includes: Pension guarantees; Retraining; Re-employment for displaced workers through an employment guarantee, with 100 percent wage insurance; Relocation support; and full just transition support for older workers who choose to work past age 65. The report estimates the average costs of supporting approximately 1,000 workers per year in such transition programs will amount to approximately $145 million per year (or $145,000 per worker).

Impacts of the Reimagine Appalachia & Clean Energy Transition Programs for Ohio: Job Creation, Economic Recovery, and Long-Term Sustainability

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, and Gregor Semieniuk - Political Economy Research Institute, October 2020

The COVID-19 pandemic has generated severe public health and economic impacts in Ohio, as with most everywhere else in the United States. This study proposes a recovery program for Ohio that is capable of exerting an effective counterforce against the state’s economic collapse in the short run while also building a durable foundation for an economically viable and ecologically sustainable longer-term recovery. Even under current pandemic conditions, we cannot forget that we have truly limited time to take decisive action around climate change. As we show, a robust climate stabilization project for Ohio will also serve as a major engine of economic recovery and expanding opportunities throughout the state.

The study is divided into five parts:

  1. Pandemic, Economic Collapse, and Conditions for Reopening Ohio
  2. Clean Energy Investments, Job Creation and Just Transition
  3. Investment Programs for Manufacturing, Infrastructure, Land Restoration and Agriculture
  4. Total Job Creation in Ohio through Combined Investments
  5. Financing a Fair and Sustainable Recovery Program

Read the text (PDF).

A New Horizon: Innovative Reclamation for a Just Transition

By various - Reclaiming Appalachia Coalition, 2019

The certainty of an Appalachian transition has become self-evident. The questions that remain are “What shape will that transition take?” and “Will our region seize the opportunity to establish just and sustainable economic models that invest in our strengths and set the region up for meaningful and healthy participation in the new economy?” Foundational to our coalition’s work is the understanding that specific, targeted intervention is necessary to ensure that an equitable vision becomes reality.

Appalachia is at the threshold of a paradigm shift into the new economy, ushered in by communities that are taking their futures into their own hands like never before and implementing innovative ways to address long-standing economic issues with degraded lands. The table on page 6 shows funded projects illustrating this shift that have been supported by our coalition, ranging from ecotourism, renewable energy, arts and culture, and creative waste recycling.

This report highlights the successes achieved in 2019 from previously submitted projects and showcases a brand new round of innovative projects. We’re very excited about both the successes that have already been funded and implemented, as well as the new opportunities that are currently being considered for Abandoned Mine Lands (AML) Pilot funding.

Read the report (Link).

How Crony Capitalism and Deregulation Poisoned Toledo's Water

By Carl Gibson - Occupy.Com, August 15, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Toledo's recent water crisis isn't unlike this year's water-related crises in West Virginia and Detroit. As in those other events, the poisoning of Toledo's water is ultimately tied to corruption at the highest levels of state government by corporate special interests.

Freedom Industries's toxic chemical spill in Charleston's Elk River in January, which poisoned drinking water for 300,000 people, was a direct result of West Virginia's state government deregulating coal, the state's top industry, and selective enforcement of environmental laws when it concerns big campaign donors in the coal business.

In Detroit, the poorest 40 percent of the city stood to lose water in their homes – something the UN has declared a basic human right. The Detroit water shutoffs were proposed by an unelected emergency manager who singlehandedly made the decision to pay off big foreign banks with $537 million meant for city water infrastructure, while making the most vulnerable foot the bill.

Toledo's water crisis would never have happened if agricultural runoff had been properly regulated – and if Ohio's government hadn't systematically diverted tax dollars meant for cities and counties to upgrade infrastructure, meanwhile rewarding corporations and the rich with more tax breaks.

Jail Time for Boss Who Ordered Employees to Dump Fracking Waste in Ohio River

By Andrea Germanos - EcoWatch, August 7, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

The owner of a Youngstown, Ohio-based company was sentenced on Tuesday [August 5, 2014] to more than two years in prison for ordering his employees to repeatedly dump toxic fracking waste into a local waterway.

Between Nov. 1, 2012 and Jan. 31, 2013, employees of Hardrock Excavating LLC, which provided services to the oil and gas industry including storing fracking waste, made over 30 discharges of fracking waste into a tributary of the Mahoning River. Sixty-four-year old Benedict W. Lupo, then-owner of Hardrock Excavating, directed his employees to dump the waste, which included benzene and toluene, under the cover of night into the waterway.

According to reporting by the Cleveland Plain Dealer, “employees tried to talk Lupo out of it, but he refused. [The judge] also pointed out a prosecutor’s pictures that detailed six weeks of clean-up in an oil-soaked creek.”

The Fine Print I:

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