In a survey released this morning by Scioto Analysis, 9 of 13 economists surveyed agreed that harmful algal blooms lead to significant economic loss for Ohio. The other four economists were uncertain, and none of the respondents disagreed.
A study from 2018 of every state’s Genuine Progress Indicator found that Ohio had the fourth highest cost of water pollution per capita, trailing only New Hampshire, Hawaii, and Delaware. Harmful algal blooms are a significant contributor to Ohio’s poor water quality, especially on the Western shores of Lake Erie near Toledo.
Will Georgic from Ohio Wesleyan wrote “There is an abundance of peer reviewed evidence indicating that Ohio suffers significant economic losses each year attributable to harmful algal blooms. Harmful algal blooms cause a decrease in property values (Wolf, Gopalakrishnan, and Klaiber 2022), a fall in fishing license sales and associated economic activity (Wolf, Georgic, and Klaiber 2017), and changes in recreational behavior such as swimming at the lake (Wolf et al. 2019; Zhang and Sohngen 2018).”
In recent years, the state has created the H2Ohio program to help address this issue. Scioto Analysis’ evaluation of the voluntary nutrient management plan initiative funded by H2Ohio found that it has so far been very successful in improving Ohio’s water.
One option the state has yet to implement is a tax on fertilizer use, which 11 of the 13 respondents agreed would be an efficient way to address this issue. As Kevin Egan from the University of Toledo wrote “No industry wants regulations. But efficient regulations are there to limit pollution and fertilizer runoff is polluting our water.”
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists. Individual responses to all surveys can be found here.