As part of its Project No Project initiative, the U.S. Chamber of Commerce has released an economic study identifying 351 stalled energy projects nationwide that, in aggregate, are costing the U.S. economy $1.1 trillion in gross domestic product (GDP) and 1.9 million jobs a year that could be created during the construction phase of these projects alone.
The study, titled ‘Project Denied: The Potential Economic Impact of Permitting Challenges Facing Proposed Energy Projects,’ was conducted by Steve Pociask, president of the American Consumer Institute (ACI), and Joseph Fuhr, professor of economics at Widener University and senior fellow at the ACI.
‘These are projects that would create jobs and give a much-needed boost to our economy, but with every day that passes, the more expensive the projects become,’ says William Kovacs, senior vice president of environment, technology and regulatory affairs at the U.S. Chamber. ‘In most cases, if the projects are substantially delayed, they won't be built.’
The study estimates the potential loss in economic value of 351 proposed solar, wind, wave, biofuel, coal, gas, nuclear and energy transmission projects that have been delayed or canceled due to significant impediments, such as regulatory barriers, including inefficient review processes and the attendant lawsuits and threats of legal action.
Highlights of the study include the following:
– In aggregate, planning and construction of the subject projects would generate $577 billion in direct investment, calculated in current dollars. The indirect and induced effects would generate an approximate $1.1 trillion increase in the GDP, including $352 billion in employment earnings, based on present discounted value (PDV) over an average construction period of seven years.
– The operation of the subject projects would generate $99 billion in direct annual output, calculated in current dollars. Including multiplier effects, this additional annual output would yield $145 billion in increased GDP, $35 billion in employment earnings, based on PDV and an average 791,200 jobs per year of operation.
– The total potential economic and employment benefits of the subject projects, if constructed and operated for 20 years, would be approximately $3.4 trillion in GDP, including $1.4 trillion in employment earnings, based on PDV, and an additional one million or more jobs per year.
SOURCE: U.S. Chamber of Commerce