Canadian Wildfire Smoke Inflicts $4 Billion Loss on Michigan Economy
Wildfire smoke from the raging fires in Canada and Northern Minnesota has blanketed the Detroit area, causing $4 billion in economic losses. On Thursday, the Anderson Economic Group issued a…
Wildfire smoke from the raging fires in Canada and Northern Minnesota has blanketed the Detroit area, causing $4 billion in economic losses. On Thursday, the Anderson Economic Group issued a study that tracked public park closures, amusement park shutdowns, canceled events, fewer customers at outdoor businesses, and workers needing medical care.
"We can already observe closures and reduced activity at parks, businesses serving customers in the open air, health clubs, and other locations where people would otherwise be exercising, relaxing, dining, working, or just enjoying the outdoors," said Richard Melstrom, an environmental economist at Anderson Economic Group. "Our preliminary estimates, based on early data, indicate these losses total in the many billions of dollars." The agency also estimates that New York State experienced about $5 billion in losses; Michigan saw more than $4 billion in losses and Wisconsin nearly $2 billion in losses from the smoke and air quality, according to CBS News.
Patrick Anderson said the estimate spans many sectors. "Agriculture, tourism, even manufacturing, transport, retail — and if you all of a sudden tell people, you can't go outside for four days, it's going to cost you something," Anderson said, according to WILX News 10.
That $4 billion study and estimate reflects direct income loss only. "You also have health losses. And we're assuming at this point that we haven't affected our reputation, but if that starts to happen, that number compounds," Anderson said. Note that these are preliminary studies and will most likely be revised in the future.
Metro Detroit endured six consecutive days of air quality alerts from July 15 through July 20. Detroit's air quality on July 16 and 17 ranked among the worst globally, with readings far exceeding unhealthy thresholds.
Dozens of outdoor events, summer camps, splash pad hours, and summer school sessions were closed or rescheduled. Steve Japinga of the Lansing Regional Chamber of Commerce said the impact was noticeable locally. “The Dam Jam, '80s night in East Lansing, some of these really cool opportunities to get together, celebrate, whatever it might be,” Japinga said, according to WTVG 13 Action News.
More than 830 wildfires continue burning across Canada while crews from throughout the continent battle to contain them. Anderson believes both countries must improve wildfire management to stop future damage.
Residents and visitors can check the National Weather Service's Air Quality Index website for air quality updates.