In a survey released this morning by Scioto Analysis, a majority of Ohio economists polled said that cities and the state of Ohio would increase social welfare if they sued oil and gas companies to pay damages for concealing the effects of climate change.
One economist who agreed was Jonathan Andreas from Bluffton University, who wrote “A lot depends on how we trade off present welfare (which might decrease) versus future welfare (which would hopefully increase).” He goes on to point out that whether or not present welfare decreases depends on how Ohio’s energy market changes. Because Ohio is a net exporter of natural gas but a net importer of other fossil fuels, this effect is somewhat uncertain.
Additionally, a plurality of economists surveyed agreed that these lawsuits could help reduce inequality, though many respondents were uncertain.
One economist who was uncertain, Faria Huq from Lake Erie College, wrote “Economically disadvantaged groups tend to be disproportionately affected by the effects of climate change, and suing oil and gas companies would help pay for some of the costs of climate change. However, if the companies passed on some of these costs to consumers in the form of higher prices, in the short run, people with lower incomes may end up having to spend a larger proportion of their incomes on these essential utilities.”
This survey comes days after California became the most recent state to file a lawsuit against oil and gas companies. Previous suits have been filed at all levels of state and local government, such as Multnomah County in Oregon and the city of Honolulu, Hawaii.
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. Individual responses to all surveys can be found here.