In a survey published by Scioto Analysis this morning, all 22 Ohio economists who responded were skeptical of the ability of coal subsidies to improve Ohio’s economy.
Of the 22 economists who responded, 21 disagreed with the statement that subsidies for coal plants would grow the economy, with 13 disagreeing strongly. The remaining economist was uncertain about the impact. Among those who disagreed with the statement, the problem of the negative external cost of coal pollution was raised in comments multiple times.
Economists who disagreed with the statement also talked about the way subsidies distort the market in the absence of positive externalities, with the public sector picking certain projects over others that do not provide a net benefit to society. Multiple economists also talked about how renewable energy sources that have positive social benefits would be a better target for subsidies than nonrenewable resources with net negative social benefits.
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists.