Ohio

By Sean O'Leary - Ohio River Valley Institute, May 18, 2021

At ORVI, we’ve documented the inability of the fossil fuel and petrochemical industries to serve as engines for job growth and prosperity in Appalachia. Although these findings may be greeted with doubt, disbelief, and sometimes anger, we find that, once the numbers sink in and people in the mining and fracking regions of Pennsylvania and the Ohio Valley look around at their communities — the struggling downtowns, declining populations, and the departures of their sons and daughters to places far away in search of opportunity — reality usually takes hold.

It can be a profoundly sad moment. But, for local leaders who may have invested years promoting these industries as economic saviors, the realization can be bitter and give rise to a question that is equal parts a challenge and a plea — What’s the alternative?

When you’re on the receiving end of that question, you feel its weight. And, if you don’t have an answer, you can feel that you’re stealing someone’s — maybe an entire community’s — hope and you’re leaving them with nothing.

By staff - Labor Network for Sustianability, May 2021

By Joe Uehlein - Labor Network for Sustainability, April 21, 2021

The approach of the 40th anniversary of Earth Day on April 22 provides us an opportunity to reflect on the “long, strange trip” shared by the environmental movement and the labor movement over four decades here on Spaceship Earth.

A billion people participate in Earth Day events, making it the largest secular civic event in the world. But when it was founded in 1970, according to Earth Day’s first national coordinator Denis Hayes, “Without the UAW, the first Earth Day would have likely flopped!”

Less than a week after he first announced the idea for Earth Day, Senator Gaylord Nelson presented his proposal to the Industrial Union Department of the AFL-CIO. Walter Ruther, President of the UAW, enthusiastically donated $2000 to help kick the effort off ““ to be followed by much more. Hayes recalls:

“The UAW was by far the largest contributor to the first Earth Day, and its support went beyond the merely financial. It printed and mailed all our materials at its expense — even those critical of pollution-belching cars. Its organizers turned out workers in every city where it has a presence. And, of course, Walter then endorsed the Clear Air Act that the Big Four were doing their damnedest to kill or gut.”

Some people may be surprised to learn that a labor union played such a significant role in the emergence of the modern environmental movement. When they think of organized labor, they think of things like support for coal and nuclear power plants and opposition to auto emissions standards.

When it comes to the environment, organized labor has two hearts beating within a single breast. On the one hand, the millions of union members are people and citizens like everybody else, threatened by air and water pollution, dependent of fossil fuels, and threatened by the devastating consequences of climate change. On the other hand, unions are responsible for protecting the jobs of their members, and efforts to protect the environment sometimes may threaten workers’ jobs. First as a working class kid and then as a labor official, I’ve been dealing with the two sides of this question my whole life.

By C.J. Polychroniou - Truthout, March 15, 2021

When it comes to climate change, state governments across the United States have been way ahead of the federal government in providing leadership toward reducing carbon pollution and building a clean energy economy. For example, when Trump announced in 2017 his intention to withdraw the U.S. from the Paris Agreement, the governors of California, Washington and New York pledged to support the international agreement, and by 2019, more than 20 other states ended up joining this alliance to combat global warming.

Robert Pollin, distinguished professor of Economics and co-director of the Political Economy Research Institute at the University of Massachusetts at Amherst, has been a driving force behind several U.S. states’ efforts to curb carbon emissions and make a transition to a green economy. In this exclusive Truthout interview, Pollin talks about how states can take crucial, proactive steps to build a clean energy future.

C.J. Polychroniou: Bob, you are the lead author of commissioned studies, produced with some of your colleagues at the Political Economy Research Institute of the University of Massachusetts at Amherst, to fight climate change for scores of U.S. states, including Pennsylvania, Ohio, West Virginia, Maine, Colorado, Washington, New York and California. The purpose of those studies is to show the way for states to attain critical reductions in carbon emissions while also embarking on a path of economy recovery and a just transition toward an environmentally sustainable environment. In general terms, how is this to be done, and is there a common strategy that all states can follow?

Robert Pollin: The basic framework that we have developed is the same for all states. For all states, we develop a path through which the state can reduce its carbon dioxide (CO2) emissions by roughly half as of 2030 and to transform into a zero emissions economy by 2050. These are the emissions reduction targets set out by the Intergovernmental Panel on Climate Change (the IPCC) that are meant to apply to the entire global economy. The IPCC — which is a UN agency that serves as a clearinghouse for climate change research — has concluded that these CO2 emissions reduction targets have to be met in order for we, the human race, to have a reasonable chance to stabilize the global average temperature at no more than 1.5 degrees Celsius above the preindustrial level, [the level of] about the year 1800.

The IPCC has concluded that stabilizing the global average temperature at no more than 1.5 degrees Celsius above preindustrial levels provides the only realistic chance for avoiding the most severe destructive impacts of climate change in terms of heat extremes, heavy precipitation, droughts, floods, sea level rise, biodiversity losses, and the corresponding impacts on health, livelihoods, food security, water supply and human security. Given that these emissions reduction targets must be met on a global scale, it follows that they also must be met in every state of the United States, with no exceptions, just like they must be met in every other country or region of the world with no exceptions.

By far the most important source of CO2 emissions entering the atmosphere is fossil fuel consumption — i.e., burning oil, coal and natural gas to produce energy. As such, the program we develop in all of the U.S. states centers on the state’s economy phasing out its entire fossil fuel industry — i.e., anything to do with producing or consuming oil, coal or natural gas — at a rate that will enable the state to hit the two IPCC emissions reduction targets: the 50 percent reduction by 2030 and zero emissions within the state by 2050.

Of course, meeting these emissions reduction targets raises a massive question right away: How can you phase out fossil fuels and still enable people to heat, light and cool their homes and workplaces; for cars, buses, trains and planes to keep running; and for industrial machinery of all types to keep operating?

It turns out that, in its basics, the answer is simple and achievable, in all the states we have studied (and everywhere else for that matter): to build a whole new clean energy infrastructure that will supplant the existing fossil fuel dominant infrastructure in each state. So the next major feature of our approach is to develop investment programs to dramatically raise energy efficiency standards in buildings, transportation systems and industrial equipment, and equally dramatically expand the supply of clean renewable energy sources, i.e. primarily solar and wind energy, but also geothermal, small-scale hydro, as well as low-emissions bioenergy.

By Elizabeth Perry - Work and Climate Change Report, February 23, 2021

A February study examined the economic changes in 22 counties the authors call “Frackalachia” – home to the Utica and Marcellus shale gas industry. The report, Appalachia’s Natural Gas Counties: Contributing more to the U.S. economy and Getting less in return examines the period from 2008 to 2019, a time when the area went from producing a negligible portion of U.S. natural gas to producing 40%. The report summarizes the job forecasts provided by oil and gas industry economic impact studies, (over 450,000 new jobs for Ohio, Pennsylvania, and West Virginia), and shows the actual economic data from the U.S. Bureau of Economic Analysis – a 1.6% increase in jobs – at a time when the number of jobs across the U.S. grew by 9.9%. Detailed statistics demonstrate the differences amongst counties and states – with Ohio faring the worst and Pennsylvania faring the best. The report’s analysis shows that in the entire area represented by the 22 counties, the share of the national personal income fell by 6.3 percent, the share of jobs fell by 7.5 percent, and the share of the national population fell by 9.7 percent , while 90% of the wealth generated from fracking left the local communities.

The report was produced and published on February 10 by the Ohio River Valley Institute, a non-profit think tank based in Pennsylvania, founded in 2020 with the vision of “moving beyond an extractive economy toward shared prosperity, lasting job growth, clean energy, and civic engagement.” This report has been widely reported, including in “Appalachia’s fracking boom has done little for local economies: Study”(Environmental Health News , Feb. 12), which summarizes the report and adds context concerning the health effects of fracking, and the failed attempts to expand production to petrochemicals and plastics using ethane, a by-product of the fracked natural gas.

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).

By James Bruggers - Inside Climate News, February 11, 2021

After fracking companies invested billions chasing the natural gas boom across West Virginia, Ohio and Pennsylvania, what do people living in the middle of the most prolific gas fields have to show for it, more than a decade later?

That’s the question the Ohio River Valley Institute, an independent think tank based in Johnstown, Pennsylvania, working to advance a more prosperous, sustainable and equitable Appalachia, asked in a report published on Wednesday.

Its answer: In short, not much.

To be sure, the report found that new horizontal drilling techniques involving hydraulic fracturing in the Marcellus and Utica shale formations, which helped reshape the nation’s oil and gas fortunes, produced a lot of economic growth. But it largely failed to bring the things that help people and local communities the most: jobs, personal income gains and population growth.

The natural gas industry hasn’t been an engine for economic prosperity, said Sean O’Leary, the institute’s senior researcher and principal author of the report, and “there is no basis on which we can see that it even can be, going into the future.”

It was unable to deliver on local prosperity even though gas production itself exceeded the most optimistic projections, he said.

The optimistic projections included a 2010 American Petroleum Institute report projecting robust job growth that was seized on by officials in Pennsylvania, Ohio and West Virginia to usher in the industry. But the institute found that jobs in the 22 counties that account for 90 percent of the production in the three states increased by only 1.7 percent, according to data from the U.S. Bureau of Economic Analysis, while nationally the number of jobs grew by 10 percent.

The fracking boom offered economic hope in the Upper Ohio River Valley after the collapse of the steel industry and amid the decline of coal mining, which was hastened by a glut of cheap gas.

By Nick Cunningham - DeSmog, February 11, 2021

The decade-long fracking boom in Appalachia has not led to significant job growth, and despite the region’s extraordinary levels of natural gas production, the industry’s promise of prosperity has “turned into almost nothing,” according to a new report. 

The fracking boom has received broad support from politicians across the aisle in Appalachia due to dreams of enormous job creation, but a report released on February 10 from Pennsylvania-based economic and sustainability think tank, the Ohio River Valley Institute (ORVI), sheds new light on the reality of this hype.

The report looked at how 22 counties across West Virginia, Pennsylvania, and Ohio — accounting for 90 percent of the region’s natural gas production — fared during the fracking boom. It found that counties that saw the most drilling ended up with weaker job growth and declining populations compared to other parts of Appalachia and the nation as a whole.

Shale gas production from Appalachia exploded from minimal levels a little over a decade ago, to more than 32 billion cubic feet per day (Bcf/d) in 2019, or roughly 40 percent of the nation’s total output. During this time, between 2008 and 2019, GDP across these 22 counties grew three times faster than that of the nation as a whole. However, based on a variety of metrics for actual economic prosperity — such as job growth, population growth, and the region’s share of national income — the region fell further behind than the rest of the country. 

Between 2008 and 2019, the number of jobs across the U.S. expanded by 10 percent, according to the ORVI report, but in Ohio, Pennsylvania, and West Virginia, job growth only grew by 4 percent. More glaringly, the 22 gas-producing counties in those three states — ground-zero for the drilling boom — only experienced 1.7 percent job growth.

“What’s really disturbing is that these disappointing results came about at a time when the region’s natural gas industry was operating at full capacity. So it’s hard to imagine a scenario in which the results would be better,” said Sean O’Leary, the report’s author.

The report cited Belmont County, Ohio, as a particularly shocking case. Belmont County has received more than a third of all natural gas investment in the state, and accounts for more than a third of the state’s gas production. The industry also accounts for about 60 percent of the county’s economy. Because of the boom, the county’s GDP grew five times faster than the national rate. And yet, the county saw a 7 percent decline in jobs and a 2 percent decline in population over the past decade.

“This report documents that many Marcellus and Utica region fracking gas counties typically have lost both population and jobs from 2008 to 2019,” said John Hanger, former Pennsylvania secretary of Environmental Protection, commenting on the report. “This report explodes in a fireball of numbers the claims that the gas industry would bring prosperity to Pennsylvania, Ohio, or West Virginia. These are stubborn facts that indicate gas drilling has done the opposite in most of the top drilling counties.”

A Boom Without Job Growth

This lack of job growth was not what the industry promised. A 2010 study from the American Petroleum Institute predicted that Pennsylvania would see more than 211,000 jobs created by 2020 due to the fracking boom, while West Virginia would see an additional 43,000 jobs. Studies like these were widely cited by politicians as proof that the fracking boom was an economic imperative and must be supported.

But the Ohio River Valley Institute report reveals the disconnect between a drilling boom and rising GDP on the one hand, and worse local employment outcomes on the other. There are likely many reasons for this disconnect related to the long list of negative externalities associated with fracking: The boom-and-bust nature of extractive industries creates risks for other business sectors, such as extreme economic volatility, deterring new businesses or expansions of existing ones; meanwhile air, water, and noise pollution negatively impact the health and environment of residents living nearby.

“There can be no mistake that the closer people live to shale gas development, the higher their risk for poor health outcomes,” Alison Steele, Executive Director of the Southwest Pennsylvania Environmental Health Project, told DeSmog. “More than two dozen peer-reviewed epidemiological studies show a correlation between living near shale gas development and a host of health issues, such as worsening asthmas, heart failure hospitalizations, premature births, and babies born with low birth weights and birth defects.”

Moreover, oil and gas drilling is capital-intensive, not job-intensive. As the example of Belmont County shows, only about 12 percent of income generated by the gas industry can be attributable to wages and employment, while in other sectors, on average, more than half of income goes to workers.

In other words, it costs a lot of money to drill, but it doesn’t employ a lot of people, and much of the income is siphoned off to shareholders. To top it off, equipment and people are imported from outside the region — many of the jobs created went to workers brought in from places such as Texas and Oklahoma.

Despite the huge increase in shale gas production over the past decade, the vast majority of the 22 counties experiencing the drilling boom also experienced “economic stagnation or outright decline and depopulation,” the report said.

The American Petroleum Institute did not respond to a request for comment.

“[W]e could see long ago that the job numbers published and pushed out by the industry years ago were based in bluster, not our economic realities,” Veronica Coptis, Executive Director of Coalfield Justice, a non-profit based in southwest Pennsylvania, told DeSmog, commenting on the report. “At industry’s behest and encouragement, Pennsylvania promoted shale gas development aggressively in rural areas for more than a decade. And yet, the southwestern counties at the epicenter of fracking do not show any obvious improvement in well-being.”

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).

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).