Faulty economic studies misled Pennsylvania lawmakers on petrochemicals: Report

[FakeNoose]

The allegedly flawed studies raise “serious academic and ethical concerns.”

Source Environmental Health News link: https://www.ehn.org/shell-plastics-pennsylvania-economics-2667094641.html

PITTSBURGH — A pair of economic impact studies that were used to justify billions of dollars in tax breaks to bring a massive petrochemical complex to Pennsylvania used flawed methods and misled lawmakers, according to a new report. Shell Polymers Monaca, the company’s first Appalachian plastics plant that sits about 30 miles northwest of Pittsburgh, began operations in November 2022. In 2012, Pennsylvania lawmakers offered Shell an “unlimited tax credit” to lure the company to the state in what was, at the time, one of the largest public subsidy packages ever awarded to a private company in the U.S.

The Pennsylvania Budget and Policy Center estimated at the time that these subsidies would save Shell $1.65 billion over 25 years. Proponents said the deal would usher in a new wave of economic growth for the state—a promise that hasn't panned out so far.

A new report from the Ohio River Valley Institute, a nonprofit think tank, examines a 2014 study and a 2021 follow-up study that have been widely cited as justification for Shell’s massive subsidies from taxpayers. Shell commissioned and funded the studies, which were conducted by researchers at Robert Morris University (RMU), a private university in a Pittsburgh suburb with around 5,300 students.

In the 2021 analysis, RMU study authors estimated the Shell plant would bring massive gains, including nearly 12,000 new jobs and more than $70 billion in economic benefits to southwestern Pennsylvania over the lifespan of the project. However, the Ohio River Valley Institute says these estimates were based on inaccurate economic projection methods, a failure to incorporate external costs, non-standard timelines and a misclassification of the plant’s purpose.

- more at link -

Can someone please email this study to the Harrisburg legislators, who are all on extended leave until the end of March?

[modrepub]

1. $1.65B for Bad Air

Shell’s air pollution violations result in $10 million fine for Beaver County ethane cracker

[link:https://stateimpact.npr.org/pennsylvania/2023/05/25/shells-air-pollution-violations-result-in-10-million-fine-for-beaver-county-ethane-cracker/|

From the Article: The plant started operations in November and has already racked up over a dozen air violations, including many related to flaring, and reported 43 malfunctions since the beginning of 2022.


Looks like they lied on their economic impact and their impact on air quality. Go figure.

[FakeNoose]

2. Monaca PA is on the Ohio River, downstream from Pittsburgh

It's actually considered a suburb of Pittsburgh, even though it's on the southern edge of Beaver County. Most of the employees at the Shell cracker plant are residents of Beaver and Allegheny counties, perhaps a few live in Butler County.

So even though Allegheny County is solid blue in the Pittsburgh area, and partially blue in the outer-lying areas, the surrounding counties including Beaver, are almost solid red. Whenever something good happens they praise the Repukes, when something bad happens they damn the Dems. That's always been their MO and I'm sure it won't change now.

The environmental impact of this Shell plant is inestimable, when you consider how it could be affecting the Ohio River. Currently they're just looking at air pollution, as far as I know.