Third-party Analysis Projects $20.8B in Losses Due to Line 5 Shutdown

An independent third-party analysis requested by the Consumer Energy Alliance (CEA) found shutting down the Line 5 pipeline risks a minimum of $20.8 billion in economic losses and at least 33,000 job losses across Michigan, Ohio, Indiana, and Pennsylvania.
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Mackinac Bridge
A third-party analysis found that shutting down the Line 5 pipeline risks a minimum of $20.8 billion in economic losses. // Photo courtesy of the Mackinac Bridge Authority

An independent third-party analysis requested by the Consumer Energy Alliance (CEA) found shutting down the Line 5 pipeline risks a minimum of $20.8 billion in economic losses and at least 33,000 job losses across Michigan, Ohio, Indiana, and Pennsylvania.

Texas-based Weinstein, Clower, and Associates used the IMPLAN economic input-output model to examine the potential business disruptions and losses to the states and nearby Canadian provinces. The analysis found two-thirds of the losses, or $13.7 billion, would come from Ohio; more than four times the impact in neighboring Michigan.

“Line 5 delivers energy that affordably fuels the lives and livelihoods of countless consumers, farmers and businesses across Michigan, Ohio, Indiana and Pennsylvania,” says Chris Ventura, Midwest executive director of CEA. “After enduring decades of economic and job-creation challenges, CEA is concerned that the reckless and arbitrary action by Governor Whitmer to shut down Line 5 could halt the region’s positive progress and further erode our economic competitiveness.”

The real-world impact will likely be greater than the model shows because the study did not examine the indirect consequences of the of the decision. One element not studied is the expected increase in fuel prices, making home heating, commercial trucking, aviation, and other fuel-powered industries more expensive.

Alongside the $20.8 billion in economic activity, the analysis projects an $8.3 billion reduction in combined gross state product, $2.36 billion lost in salaries, wages, and benefits, at least 33,755 jobs forgone, and a $265.7 million decrease in annual state tax revenues.

The CEA is a group with 550,000 members nationwide looking to lead dialogue surrounding energy, its role in the economy, and its environmental impact across these supply chains with the goal of protecting the consumers that rely on that energy.

“It is time to come together to build the Line 5 Tunnel Project so our families and businesses can continue to receive the life-sustaining energy we need, in the safest and most environmentally responsible way possible,” says Ventura.

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