Firm-level economic effects of HABS: A tool for business loss assessment |
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| Authors: | Kimberly L Morgan Sherry L Larkin Charles M Adams |
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| Institution: | 1. Bureau of Epidemiology, Florida Department of Health, Tallahassee, FL, USA;2. University of Florida, College of Veterinary Medicine, College of Public Health and Health Professions, Gainesville, FL, USA;3. European Centre for Environment and Human Health, University of Exeter Medical School, Truro, Cornwall, UK;4. University of Miami, Miami, FL, USA;5. Environmental Health Program, Mote Marine Laboratory, Sarasota, FL, USA;6. Marine Policy Center, Woods Hole Oceanographic Institution, Woods Hole, MA, USA;1. Department of Neurology, Division of Neuropsychology, University of Maryland School of Medicine, 110 S. Paca St. 3rd Floor, Baltimore, MD 21201, USA;2. Department of Medicine, College of Medicine, Emerging Pathogens Institute, University of Florida, 2055 Mowry Road; Box 100009, Gainesville, FL 32610, USA;1. Environmental and Fisheries Sciences Division, Northwest Fisheries Science Center, National Marine Fisheries Service, National Oceanic and Atmospheric Administration, 2725 Montlake Blvd E, Seattle, WA 98112, USA;2. Institute for Marine and Antarctic Studies, University of Tasmania, Private Bag 129, Hobart, Tasmania 7001, Australia;3. Ocean Sciences Department, University of California Santa Cruz, Santa Cruz, CA 95064, USA;4. Plancton Andino spA, Laboratorio Puerto Varas, Terraplén 869, Puerto Varas, Chile;5. Centro de Estudios de Algas Nocivas (CREAN), Instituto de Fomento Pesquero (IFOP), Padre Harter 574, Puerto Montt, Chile;6. Estuary & Ocean Science Center, Romberg Tiburon Campus, San Francisco State University, 3150 Paradise Dr., Tiburon, CA 94920, USA;1. Applied Ocean Physics and Engineering, Woods Hole Oceanographic Institution, Woods Hole, MA, USA;2. Environmental and Fisheries Sciences Division, Northwest Fisheries Science Center, National Marine Fisheries Service, National Oceanic and Atmospheric Administration, Seattle, WA, USA |
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| Abstract: | While the economic consequences of HABs may seem obvious, there is little empirical evidence to support the assertion or its magnitude relative to other environmental effects. As scientists learn more about the effectiveness of alternative HAB prevention, mitigation, and control strategies and agencies prepare for a suite of environmental events, information on potential economic losses are needed at the firm level to evaluate and justify continued HAB-related expenditures. To determine the extent of monetary losses that some firms may have incurred due to blooms of Karenia brevis (red tides) in Southwest Florida, 7 years of daily proprietary data were obtained from three beachfront restaurants and supplemented with environmental data from nearby weather stations. The statistical models revealed that reductions in daily sales ranged from $868 to $3734 (13.7%–15.3% on average) when red tide conditions were present. Estimated losses are compared to other environmental events and were found to coincide with those from other studies. The incidence of red tide events (as noted by each restaurant manager) corresponded with cell counts that averaged 180,853 cells/l as measured within 6 miles. Collectively this information supports the hypothesis of localized economic losses and provides a threshold cell count for future loss projections. |
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