Gulf of Mexico Oil Spill Blog Alabama Economic Loss

Alabama Economic Loss

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.

Source: UA: Oil spill may have cost Alabama $3.3B in output | Birmingham Business Journal

Advertisements
This entry was posted in Alabama and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.

2 Responses to Gulf of Mexico Oil Spill Blog Alabama Economic Loss

  1. Will the state of Alabama listen to this research though?!
    These are compelling numbers, but all economists developing policy recommendations know the difficulty in translation of good policy research into action by authorities. Immediate reaction through the claims procedures from Alabama’s authorities directly building on this research will go a long way to justifying research in other states and industries building our collective intelligence of the total costs of this oil spill.

    Slick Economist
    http://slickeconomist.wordpress.com

  2. Pingback: Gulf of Mexico oil spill costing Alabama over one billion dollars annually | Slick Economist

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s