Chamber of Commerce report examines economic impacts of denying new pipeline permits in US Northeast
The U.S. Chamber of Commerce Institute for 21st Century Energy recently released a report examining
the economic and job impacts of limiting natural gas infrastructure in the Northeastern United States.
According to the report, if no new pipelines are built in the region, the area would lose more than 78,000 jobs and $7.6 billion in gross domestic product (GDP) by the year 2020 as well as more than $4.4 billion
in labor income.
The Chamber of Commerce found that a lack of natural gas infrastructure results in higher energy prices in the Northeast, with residents paying 29 percent more for their natural gas and 44 percent more for their electricity than the U.S. average. Industrial users in the Northeast pay more than double for their natural
gas than the U.S. average and 62 percent more for electricity.
The study considered a scenario in which the natural gas pipeline capacity that would not be built totals 5.1 billion cubic feet per day, which is about 25 percent more than the region’s existing gas capacity.
According to the study, New England would lose 22,900 jobs and $2.0 billion in lost state GDP if no new pipelines are built. Pennsylvania would lose 21,900 jobs and $2.4 billion in state GDP. New York would lose 17,400 jobs and $1.6 billion in state GDP, and Massachusetts, New Jersey, Ohio and West Virginia could also face similar economic losses, according to the study.
