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Impacts of Water Quality on the Southwest Florida Economy
Updated: Oct 7
Measuring the economic consequences of harmful algal blooms
Clean water is vital to Southwest Florida’s economy. The region’s coastal ecosystems support tourism, fisheries, property values, jobs, and outdoor recreation. When harmful algal blooms (HABs) and other water quality problems affect estuaries, beaches, and canals, the economic consequences can be substantial.
Captains for Clean Water, the Conservancy of Southwest Florida, and the Sanibel-Captiva Conservation Foundation engaged us to quantify the economic impacts of HABs and degraded water quality across Charlotte, Lee, and Collier counties. We reviewed more than 100 sources on HABs and coastal water quality, and interviewed fishing guides, developers, real estate professionals, business owners, wildlife biologists, regulators, and elected officials. We also analyzed NOAA, Florida Fish and Wildlife Conservation Commission, state recreation, and county tax data to establish economic baselines.
We used economic impact modeling, property-value analysis, and non-market valuation to estimate losses to economic activity, property value, tax revenue, and recreation. Our team also developed a spreadsheet tool that lets decision-makers explore how different bloom frequencies, recovery times, and economic conditions could affect future losses.
Our analysis found that a HAB similar to the 2018 event could cost the region $5.2 billion in coastal economic output and more than 43,000 jobs in a single year. Property values near the coast could decline by $17.8 billion, with a corresponding loss in local tax revenue.
The study gives Southwest Florida organizations and elected leaders economic evidence to make the case for policies that protect and improve water quality.
Dr. Gretchen Greene discusses the study with the Harte Research Institute's Clean Coast Texas program.
