Economic Impact Assessment of HABS and Large Detrimental Water Quality Events in Southwest Florida

Algae and boats in a marina. Photo: Conservancy of Southwest Florida

Measuring the economic consequences of harmful algal blooms

Southwest Florida’s economy relies on clean water, healthy estuaries, and accessible beaches. Harmful algal blooms (HABs) and other water quality issues have repeatedly disrupted fisheries, tourism, property values, jobs, and outdoor recreation, thereby threatening communities, livelihoods, and the regional economy.

Captains for Clean Water, the Conservancy of Southwest Florida, and the Sanibel Captiva Conservation Foundation (SCCF) enlisted Greene Economics to conduct a thorough analysis of the economic repercussions of degraded water quality across Charlotte, Lee, and Collier counties. The coalition requested county-level estimates to guide restoration projects, policy decisions, and infrastructure planning.

Our team established a baseline of natural and economic assets across the three counties. We reviewed over 100 studies on water quality and HAB impacts and analyzed data from NOAA fisheries, Florida Fish and Wildlife Conservation Commission landings, and SCORP datasets. We evaluated commercial and recreational fishing, marine-dependent employment and output, property values within one mile of waterways, and associated tax revenues.

Interviews with fishing guides, real estate professionals, business owners, wildlife experts, and local officials provided insight into local conditions. Scenario models assessed how repeated or prolonged HAB events could compound economic losses over time. 

The study findings indicate significant potential economic fallout from poor water quality and HAB, as evidenced by the following estimates:

A severe HAB event could lead to losses of $460 million in fisheries, more than 43,000 jobs, and $5.2 billion in economic output. Waterfront property values could fall by $17.8 billion, resulting in $60 million in lost tax revenue. Outdoor recreation, central to the region’s quality of life, could decline by $8.1 billion. Repeated or prolonged events would extend and compound these impacts, delaying ecological and economic recovery.

This analysis provides Captains for Clean Water, the Conservancy of Southwest Florida, and SCCF with critical insights to prioritize restoration projects and inform policy decisions, contributing to the sustainability of the region's economic and ecological health.