The Hidden Economics of Environmental Racism in Cancer Alley: An Overview The Gross Domestic Product(GDP) is typically understood as the annual overall value of goods produced and services rendered in a country, state, or area. Looking at a state’s GDP helps to determine the economic health and stability of that state. The graph below shows a comparison of the following industry-heavy states: Louisiana, Ohio, Pennsylvania, and Texas, with the GDP of the United States serving as a benchmark for overall average GDP. Between 1977-2020 the graph shows that Louisiana consistently lagged behind the other heavy-industry states. For example: Louisiana’s GDP only rose 52.7% between 1977-2020, compared to Texas, which rose 293.5 % Percentage increase between 1977-2020: United States: 192.8% Louisiana: 52.7% Ohio: 98.3% Pennsylvania: 113.4% Texas: 293.5% In Louisiana, claims of environmental racism have reached international audiences. This overview highlights philosophical and economic questions to understand the implications of such claims and if true, what duties and obligations are owed to the directly-impacted communities in Plaquemines, St. James, and St. John the Baptist Parish. Plaquemines Parish is included in this overview due to the underrepresented impact industry has on the area and the current and highly controversial proposed Plaquemines Liquid Terminal(PLT) project. 0 100 200 300 Percentage % GDP 1977-2020 United States Louisiana Ohio Pennslyvania Texas Property Value 7,8 Property value has a strong correlation between desirability to live in the area. This is because if an area is highly sought after, then this decreases the “inventory” available, making the prices for that inventory to rise. If the area is not a highly-sought-after area, then the area is saturated with inventory, so then the inventory is not as valuable. Thus, if a property value trends low with little increase over a time period, the area is not deemed as a desirable place to live. For example. St. James and St. John the Baptist have little growth in property value over the past decade and have been well below the national average. [The United States serves as a benchmark for average property value.] Plaquemines St. Charles St. James St. John the Baptist $57,204 $69,019 $51,603 $57,429 According to Louisiana Economic Development(LED), Louisiana most recently(June 2021) won the Area Development’s Silver Shovel Award for the “tenth time in twelve years.” 10 This reflects the exponential growth in industrial development in Louisiana over the years, especially within the last decade. However, despite the claim of an increase in new and direct jobs and billions in capital investment, as shown in the graph above, Louisiana has seen very little GDP growth. This indicates that Louisiana is not receiving the economic benefits of this celebrated industrial boom. 1 Median Income 2,3,4,5,6 $0.00 $100,000.00 $200,000.00 $300,000.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 PROPERTY VALUE YEAR Property Value - Parishes: 2012 - 2021 St. Charles St. James St. John the Baptist Parish United States Plaquemines Parish: Convent -St. James LaPlace-St. John the Baptist Norco-St. Charles Port Sulphur- Plaquemines $26,250 $61,410 $68,271 $27,650 Industry-Heavy Towns: $0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Property Value-Towns: 2012-2021 Convent LaPlace Norco Port Sulphur Louisiana [Louisiana serves as a benchmark for average property value.] Gross Domestic Product(GDP) 9 in Industry-Heavy States
Transcript
The Hidden Economics of Environmental
Racism in Cancer Alley: An Overview
The Gross Domestic Product(GDP) is typically understood as the annual overall value of goods produced and services rendered in a country, state, or area. Looking at a state’s GDP helps to determine the economic health and stability of that state. The graph below shows a comparison of the following industry-heavy states: Louisiana, Ohio, Pennsylvania, and Texas, with the GDP of the United States serving as a benchmark for overall average GDP. Between 1977-2020 the graph shows that Louisiana consistently lagged behind the other heavy-industry states. For example: Louisiana’s GDP only rose 52.7% between 1977-2020, compared to Texas, which rose 293.5%
Percentage increase between 1977-2020:United States: 192.8%Louisiana: 52.7%Ohio: 98.3%Pennsylvania: 113.4%Texas: 293.5%In Louisiana, claims of environmental racism have reached
international audiences. This overview highlights philosophical and economic questions to understand the implications of such claims and if true, what duties and obligations are owed to the directly-impacted communities in Plaquemines, St. James, and St. John the Baptist Parish.
Plaquemines Parish is included in this overview due to the underrepresented impact industry has on the area and the current and highly controversial proposed Plaquemines Liquid Terminal(PLT) project.
0
100
200
300
Percentage %
GDP 1977-2020
United States Louisiana OhioPennslyvania Texas
Property Value7,8
Property value has a strong correlation between desirability to live in the area. This is because if an area is highly sought after, then this decreases the “inventory” available, making the prices for that inventory to rise. If the area is not a highly-sought-after area, then the area is saturated with inventory, so then the inventory is not as valuable. Thus, if a property value trends low with little increase over a time period, the area is not deemed as a desirable place to live. For example. St. James and St. John the Baptist have little growth in property value over the past decade and have been well below the national average. [The United States serves as a benchmark for average property value.]
Plaquemines St. Charles
St. James
St. John the Baptist
$57,204 $69,019 $51,603 $57,429
According to Louisiana Economic Development(LED), Louisiana most recently(June 2021) won the Area Development’s Silver Shovel Award for the “tenth time in twelve years.”10 This reflects the exponential growth in industrial development in Louisiana over the years, especially within the last decade. However, despite the claim of an increase in new and direct jobs and billions in capital investment, as shown in the graph above, Louisiana has seen very little GDP growth. This indicates that Louisiana is not receiving the economic benefits of this celebrated industrial boom.
1
Median Income2,3,4,5,6
$0.00
$100,000.00
$200,000.00
$300,000.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
PRO
PER
TY
VA
LUE
YEAR
Proper ty Value-Par ishes : 2012-2021
St. Charles St. JamesSt. John the Baptist Parish United StatesPlaquemines
Parish:
Convent-St. James
LaPlace-St. John the Baptist
Norco-St. Charles
Port Sulphur-Plaquemines
$26,250 $61,410 $68,271 $27,650
Industry-Heavy Towns:$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Property Value-Towns: 2012-2021
Convent LaPlace
Norco Port Sulphur
Louisiana
[Louisiana serves as a benchmark for average property value.]
Gross Domestic Product(GDP)9 in Industry-Heavy States
Industrial Ad Valorem Tax Exemption Program(ITEP):
• Initiated Byo Board of Commerce and Industry. o ITEP is unique in that it is the only state-run
corporate subsidy program in the United States.
• Programo Original Rules:
§ 5 years with 100% property tax abatement, with the option for the company to reapply for an additional 5 years—10 years total.
§ The approved company does not have to pay local municipal or parish property taxes for the duration of the application.
o New Rules:§ Approved companies are given an
80%11 reduction in property taxes for up to 10 years to new facilities or expansions on existing ones.
• Eligibilityo Limited to manufacturing jobs only. o
Payment in Lieu of Taxes(PILOT): • Administered and Initiated By
o Federal Government • Program
o Payments made by the federal government to local governments for lost property taxes due to federal land that is not subject to property taxes.
o An application can be extended from the initial 10-20 year agreement to more than 40 years.
• Eligibility o A broad range of economic development
projects, ranging from residential to industrial.
Cultural Impacts:• Mid-Barataria Sediment Diversion12
o Liquids terminal in the vicinity of the town of Ironton, LA and the Phillips 66 Alliance Refinery.
o The purpose of the sediment diversion project is to reintroduce freshwater and sediment from the Mississippi River to the Basin to increase sediment deposition and reestablish deltaic processes that build, sustain and maintain land.
• Known Burial Sties:o St. Rosalie Sugar Plantation
§ Andrew Durnford,13 a free black man, owned and operated a sugar plantation at St. Rosalie Plantation.
§ The Durnford family tombs are on the land along with unmarked graves of enslaved peoples.
§ In 1977, the Durnford tombs and unmarked graves were first bulldozed by Louisiana Power & Light14 now known as Entergy(c. 1989).
Past And Current Community Opposition:• Coal Terminal: Ram Terminals LLC
o History of community opposition (2015) 15
to industrial development in the area, due to concerns about traffic, air quality, and impact on property values.
o In May 2021, Ironton residents16 filed comments opposing the Plaquemines Liquids Terminal.
Economic Impacts:• Community Outreach
o No• Direct Jobs:
o 3517
• Main Corporate Subsidy Programs:o PILOT
Current ProjectsFormosa Plastics, The Sunshine Project
Cultural Impacts:o Chemical manufacturing complex in St.
James Parish on a 2,4000 acre tract along the bank of the Mississippi River18 in the majority-Black District 5 of St. James Parish.
o Formosa’s Archeology Team knew of three burial sites, but did not disclose this information.19
• Known Burial Sites:o If the project goes forward three burial
sites will be further desecrated: 20
§ Buena Vista Plantation Cemetery§ Elina Plantation Cemetery§ Acadia Plantation Cemetery
Past And Current Community Opposition:• Significant Community(e.g., Rise-St James,
Coalition Against Death Alley(CADA) and International Opposition, including the UN.21
Economic Impacts:• Community Outreach:22
o Yesq Student Empowerment Program:
o Gift-giving of expensive goods: headphones, iPads, dinner at the Ritz Carlton.
o No mentoring efforts listed.
q Sponsored Multiple Events in St. James
q Community Food Drive:o Boxes of high processed, low-
cost food given to residents.• Direct Jobs:
o 1,200
Main Corporate Subsidy Programs for Industry in Louisiana
2. John the Baptist Parish, Louisiana.” 2019. 2019.https://www.census.gov/quickfacts/fact/table/stjamesparishlouisiana, plaqueminesparishlouisiana,stjohnthebaptistparishlouisiana/PST045219.
3. “Laplace, LA | Data USA.” 2018. 2018. 4.https://datausa.io/profile/geo/laplace-la.4. “Port Sulphur, LA | Data USA.” 2021. 2021. https://datausa.io/profile/geo/port-sulphur-la.5. “Norco, LA | Data USA.” 2021. 2021. https://datausa.io/profile/geo/norco-la.6. “Convent - Place Explorer - Data Commons.” 2021. 2021.
7. “Saint John the Baptist Parish LA Home Prices & Home Values.” 2021. Zillow. 2021. https://www.zillow.com/saint-john-the-baptist-parish-la/home-values/.
8. “Louisiana Home Prices & Home Values.” 2021. Zillow. 2021. https://www.zillow.com/la/home-values/.9. Louisiana vs. Pennsylvania | Gross Domestic Product Trends over 1977-2020.” 2021. United States Regional Economic
10. “Louisiana Earns 2021 Silver Shovel Award For Economic Development Wins | Louisiana Economic Development.” 2021. 2021. https://www.opportunitylouisiana.com/led-news/news-releases/news/2021/06/10/louisiana-earns-2021-silver-shovel-award-for-economic-development-wins.
11. Villa, Anne G. 2018. “Notice of Intent:Deparment of Economic Development Office of Business Development: Industiral Ad Volerm Tax Exemption.” Notice of Intent(LAC 13:I. Chapter 5). Louisiana: DepartmenProgramt of Economic Development.https://www.opportunitylouisiana.com/docs/default-source/boards-reports/MeetingCategory/louisiana-board-of-commerce-and-industry/itep-noi---redline---led-may-20-2018.pdf?sfvrsn=791a105_0.
12. “Mid-Barataria Sediment Diversion.” 2014. Coastal Protection And Restoration Authority. June 19, 2014. https://coastal.la.gov/project/mid-barataria-sediment-diversion/.
13. Durnford, Andrew, and John McDonogh. 1840. “St. Rosalie Plantation Record Book, 1840-1868:Free People of Color in Louisiana,” 1–120, pg. 9.
14. Hammer, David. 2021. “Plans for Plaquemines Parish Oil Terminal near Cemetery of Enslaved Stir Fears of Desecration.” NOLA.Com. February 15, 2021. https://www.nola.com/news/article_31b2bb44-6bc8-11eb-a60b-27e72894743d.html.
15. Wendland, Tegan. 2015. “Public Meeting On Coal Terminal Held In Plaquemines Parish.” WWNO. September 18, 2015. https://www.wwno.org/coastal-desk/2015-09- 18/public-meeting-on-coal-terminal-held-in-plaquemines-parish.
17. Plaquemines Port Pursues Crude Oil Export Terminal | LED News | Louisiana Economic Development.” 2018. August 29, 2018. https://www.opportunitylouisiana.com/led-news/news- releases/news/2018/08/29/plaquemines-port-pursues-crude-oil-export-terminal.
18. “Proposed Project.” 2017. 2021 2017. http://www.sunshineprojectla.com/proposed-project.19. Spees, Pamela C. 2020. “Burial Sites on Formosa Property.” Louisiana: Center for Constitutional Rights. 20. Brown, Imani Jacqueline, and Samaneh Moafi. 2021. “Environmental Racism In Death Alley, Louisiana ← Forensic
Architecture.” 2021. https://forensic-architecture.org/investigation/environmental-racism-in-death-alley-louisiana.21. “Environmental Racism in Louisiana’s ‘Cancer Alley’, Must End, Say UN Human Rights Experts.” 2021. UN News. March 2,
2021. https://news.un.org/en/story/2021/03/1086172.22. “Meeting Community Needs by the Numbers.” 2021. The Sunshine Project.
The Mellon Graduate Program in Community-Engaged ScholarshipTulane University
Mellon Fellow:Siobhain Lash
Research Assistants:Olivia Weik- Contribution on Plaquemines Liquid Terminal Research
Sahil Inaganti –Contribution on Formosa Plastics Research
Contributors: Dr. Kimberly Terrell, Tulane EnvironmentalLaw Clinic
• The availability of high-paying, low exposure(e.g., minimal to no exposure to chemicals or particulates) jobs that are appropriate for the local demographic.
• Limit the outsourcing of high-paying, low exposure jobs.• Increase the availability of training programs for local
residents to promote job retention and employment from local labor.
• Create mentoring programs that are verified and demonstrate rigorous internship programs that facilitate learning and promote job placement.
• Develop an incentive structure that encourages companies planning future development in an area to decline ITEP and PILOT.
• Establish a meaningful role for directly-impacted communities in the decision-making process.
• Require companies to invest in infrastructure improvements to help promote property value and desirability to live in the area.
Summary
From the general data in the fact sheet, these initial philosophical duties and obligations are
