The Economic Effects of Harmful Algal Blooms

30.8 Conclusions

Much work remains to develop reliable estimates of the economic effects of HABs. As this work proceeds, attention should be directed at the rationale for developing these estimates. While government officials and others might solicit economic estimates of any kind in order to justify idiosyncratic public health or scientific agendas, attention should be directed at developing estimates of true economic losses, i.e., surplus changes. Based upon our experience with the field, although the number of studies of economic losses or impacts is limited, they outnumber studies of the economic costs of societal responses to HAB events. In other words, societal responses to HABs have been debated, formulated, and implemented with an inadequate understanding of the net benefits of such responses. Further efforts on the economics of HABs should focus on identifying the array of societal responses and characterizing the cost minimizing combination of management actions.