Alabama Economic Loss
University of Alabama: Oil spill may have cost Alabama $3.3B in output
Birmingham Business Journal – by Ben Piper
The BP Deepwater Horizon oil spill could have caused a loss of up to $3.3 billion in economic output in Alabama, according to researchers from the University of Alabama.
In the worst-case scenario, researchers from UA’s Center for Business and Economic Research said the spill could have resulted the loss of $971 million in earnings and 49,000 jobs in 2010.
A more optimistic scenario said the state could have lost nearly $1 billion in output, $284 million in earnings and 13,600 jobs.
“The oil spill is the largest in U.S. history and its effects are expected to last a number of years,” the report said. “Future year impacts will depend on additional information gained over time about the nature of the disaster and the response to it as well as the combined environmental, ecological, and quality of life effects of the spill and response.”
The report concludes that individuals and businesses could make direct claims for lost revenue, income and property damage of up to $1.6 billion.
Nearly $150 million could be claimed for lost state and local tax revenues.