Consumer Energy Alliance Releases Report Highlighting Economic Impacts to Midwest and Great Lakes Consumers from Reckless Line 5 Closure
May 10, 2021
LANSING, Mich.–(BUSINESS WIRE)–An unnecessary and premature shutdown of the Line 5 pipeline risks at least 33,000 jobs and a minimum of $20.8 billion in economic losses to consumers in Michigan, Ohio, Indiana and Pennsylvania, an independent third-party analysis requested by Consumer Energy Alliance (CEA) finds.
Weinstein, Clower and Associates used the IMPLAN economic input-output model to examine the potential economic losses and business disruptions those states, others nearby and Canadian provinces would sustain as a result of the closure of Enbridge’s Line 5, a vital piece of regional energy infrastructure.
Shockingly, two-thirds of the losses, or $13.7 billion, would come from Ohio. That is more than four times the impact to Michigan, according to the study.
The modeled losses likely understate the real-world impact because the study does not examine several other avenues of knock-on economic effects which will add to the total economic damage. These include expected upward pressure on fuel prices for consumers for gasoline and home heating; commercial trucking and aviation users; and farmers whose fertilizers rely on the feedstock carried by Line 5. Higher fuel prices across the board translate to more expensive costs to consumers.
The report estimated the following regional and state level economic losses (MI, OH, IN, PA):
- $20.8 billion loss in economic activity;
- $8.3 billion reduction in combined Gross State Product;
- $2.36 billion foregone labor earnings in salaries, wages and benefits;
- 33,755 lost jobs; and
- $265.7 million lower annual state tax revenues.
“Line 5 delivers energy that affordably fuels the lives and livelihoods of countless consumers, farmers and businesses across Michigan, Ohio, Indiana and Pennsylvania. 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,” CEA Midwest Executive Director Chris Ventura said.
“If Line 5 is shut down, the region – with Ohio bearing the highest economic burden – will see job losses, diminished tax receipts and higher energy costs. Our region cannot afford to send people and good-paying jobs to other parts of the country. A shutdown of Line 5 would be bad for the Midwest’s economy and harmful to U.S.-Canadian relations. Instead of closing Line 5, our leaders should acknowledge the necessity of continuing to use the safest, most environmentally responsible way to transport energy while providing additional environmental protections for our Great Lakes by supporting the Line 5 Tunnel Project.”
“While Governor Whitmer may enjoy shutting down her state’s economy for political purposes, families and small businesses across the region and Canada deserve better. We hope Michigan’s governor wakes up to the fact that her irresponsible opposition to Line 5 will destroy the lives and livelihoods of tens of thousands of families, and actually do more harm to the environment. 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.”
About Consumer Energy Alliance
Consumer Energy Alliance (CEA) is the leading voice for sensible energy and environmental policies for consumers, bringing together families, farmers, small businesses, distributors, producers, and manufacturers to support America’s environmentally sustainable energy future. With more than 550,000 members nationwide, we are committed to leading the nation’s dialogue around energy, its critical role in the economy, and how it supports the vital supply chains for the families and businesses that depend on them. CEA works daily to encourage communities across the nation to seek sensible, realistic, and environmentally responsible solutions to meet our nation’s energy needs.