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Economic Boondoggle

Significant Adverse Economic Impacts
Cape Wind would result in a high net cost to the public due to duplicative subsidies and tax credits, increased electric costs, and negative impacts to tourism, jobs, and property values. The project would impose billions of dollars in additional electricity costs for businesses, households, and municipalities throughout Massachusetts. Scores of commercial fishermen, who earn the majority of their income in the area of the proposed site, believe this project would displace commercial fishing and permanently threaten their livelihoods. A decline in tourism would lead to the loss of up to 2,500 jobs according to the Beacon Hill Institute at Suffolk University. Property values would also decline by $1.35 billion.

The Cost
Based on its now teminated contracts with National Grid and Eversurce, Cape Wind would have added $3 billion in surcharges for Massachusetts ratepaers. Such rate increases would lead to job losses as businesses strive to offset these costs. While these contracts have been canceled, Cape Wind was banking on pending state energy legislation to try to secure new above-market contracts. Cape Wind would also harm the Cape and Islands economy by threatening tourism and commercial fishing and by lowering property values.

Expert analysts expect that this contract will cost the state jobs, force cuts in schools and town services, and force an undue burden on already struggling businesses.
The Cape Wind project would result in losses in tourism and employment, declines in property values, and losses in fisheries income. Known for its beaches and natural beauty, Cape Cod and the islands of Nantucket and Martha's Vineyard are one of the top ten tourist destinations in the country. Industrialization of Nantucket Sound by Cape Wind would cause losses in tourism and employment, as well as declines in property values.

In comparison to the number of jobs lost by the construction of Cape Wind, the jobs potentially created by Cape Wind are negligible (50) and will largely go to off-Cape and even out of state workers. The foundations and turbines are scheduled to be built in Europe instead of locally - on the backs of U.S. taxpayers and ratepayers.

While Cape Wind relies on questionable anecdotal evidence of wind farm related tourism in Denmark, a study by the Beacon Hill Institute calculated:

    * A reduction in employment of 1173-2533 jobs,
    * A reduction in tourist spending of $57 million to $123 million,
    * A related drop in output of $94 million to $203 million and a drop in earnings of $28 million to $61 million, and
    * A loss in property values of $1.35 billion.

If Cape Wind's 25-square-mile grid were constructed, commercial fishermen, who rely on the proposed site for more than half their catch, say they would be restricted in their access to fish fertile waters. The Massachusetts Fishermen's Partnership, which represents 18 commercial fishing organizations, says that navigation of mobile fishing gear between the 130 towers would be hazardous or impossible and, in short, Cape Wind would displace commercial fishing from Nantucket Sound.

Opposition To Cape Wind Continues to Grow

  • New England Ratepayers Association mailed this informational postcard to 30,000 homes in MA: Link
    "Don't let middle class taxpayers foot the bill for a risky, expensive, and unnecessary project."
  • AIM (Associated Industries of MA) & MACP (MA Competitive Partnership) Place Full-Page Ads.
    Click
    here to check out the May 22nd advertisement that ran in the Cape Cod Times, Boston Globe, Boston Herald. "Cape Wind makes MA less competitive. And it makes even less sense."
    Link to the June 13th ad that ran in DC papers: Politico, The Hill, Roll Call. "Some Facts About The Cape Wind Project You May Not Know"
  • Who are AIM and MACP? Link