The Texas Grand Slam

Abstract

Red tides, harmful algal blooms caused by Karenia brevis, disrupt marine ecosystems and coastal economies. We estimate their effects on Texas marine recreational fishing demand using reduced-form and travel cost models. We find that red tides reduce site-level fishing activity by 15-33%, with effects increasing in bloom severity and concentrated within two weeks of exposure. Anglers are willing to pay $7-$10 per trip to avoid moderate- and high-severity blooms and substitute toward sites with offshore access during low-severity events. Estimated annual welfare losses under simulated statewide bloom conditions range from $267,000-$767,000 based on site-choice responses among participating anglers.