As hurricane Katrina moves its’ way through New Orleans, many economic issues emerge. Experts are now predicting that Katrina could be the costliest hurricane to every hit America. The reason the damage is expected to be so great is not just due to the magnitude of the storm but also because of the level of development along our nation’s coastlines. Over 50% of our nation’s population lives on a coast while coastlines make up less then 20% of our landmass. The result of this population density is devastating on the environment because coastal zones are considered very ecologically fragile. For decades the effects of our presence in the Gulf coast area have been evident. Biological diversity is decreasing, and we are losing over 100 square miles of land mass along the coast every year due to our unnatural control of the Mississippi River. From an environmental standpoint it is clear that coastal zones need to be managed in a way that does not threaten the ecosystem; however, the majority of the public does not base their decisions on whether or not an action is environmentally sound.
As the frequency of devastating hurricanes hitting the American coastline increases, I wonder if an economic reason to leave the coast will present itself. The more money that insurance companies have to pay out as a result of hurricane damage the higher insurance premiums will be for both businesses and residences, causing a shift in the demand curve. Eventually, some insurance companies may even refuse to insure those places all together, causing a shift in the supply curve. Either occurrence would prove beneficial for the environment.
Do you think that the day is coming where population density will actually decrease along the southern coastlines?
There is a lot of very interesting and alarming information about the current condition of our coastal zones at
http://www.ocrm.nos.noaa.gov/czm/
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