Not Just a Pretty Problem: How Coral Bleaching is an Economic Crisis

Niki Chronis | US Environmental Policy Student

The United States’ Coral reefs, with their vibrant colors, complex shapes, and thriving ecosystems, are one of nature’s most remarkable phenomena. Our reefs, primarily located in Florida, Hawaii, Puerto Rico, and the Virgin Islands, are essential for biodiversity and a flourishing economy, raking in up to $3.4 billion annually in flood prevention, tourism, and food supply.[1] However, due to climate change, the health of coral reefs is gradually declining. Heightened stress from changing conditions forces corals to expel algae from their tissues, causing coral bleaching.[2] Shifts in water temperature, low tides, and contacts with pollutants, anthropogenic activities, cause Zooxanthellae to release from coral, stripping it from its color and life support. In 2005, the U.S. lost half of its coral reefs in the Caribbean due to a massive bleaching event caused by thermal stress, a direct consequence of global warming.[3]

Beyond commercial benefits, stable coral reefs can absorb up to 97% of wave energy, creating a buffer between the shore and the intensity of the ocean.[4] Coral bleaching and death can significantly alter reef structure, threatening the safety of coastal towns that utilize reefs for natural flood prevention. Decreased coral erodes the sea floor, leading to rising sea levels, flooding, and storm surges. In Florida alone, coral reef degradation could increase flood risks to 7,300 people, with an estimated $823.6 million in damages annually.[5] The bleaching and decay of coral could result in millions of dollars in damages to coastal communities, endanger lives, and threaten long-term community resilience to natural disasters.

While addressing global warming is a complex and long-term effort, a more immediate strategy for mitigating coral reef damage is controlling the chemicals that enter waterways through toxic runoff and nonpoint source pollution.[6] Human activities endanger coral reefs but preserving them is an environmental and economic imperative. Therefore, all U.S. coastal states should implement mandatory Best Management Practices (BMPs) to control nonpoint source pollution, as they are currently not federally required under the Clean Water Act yet could slow the deterioration of coral reefs.

Section 319 of the Clean Water Act encourages states to limit their nonpoint source pollution by implementing Best Management Practices (BMPs), which can effectively reduce pollution to a level comparable with water quality goals.[7] BMPs could include riparian buffers, grass filter strips, stream exclusion fencing, rotational grazing of cattle to prevent erosion and protect vegetation that absorbs pollutants, and diversifying pest management in order to prevent pesticide and fertilizer runoff from encountering coral.[8] Nonpoint source pollution mandates via BMPs are done on a state-by-state basis and are not federally required.[9] States with loose regulations could pollute waterways with agricultural runoff like nitrogen and phosphorus or release sediments into the water through coastal development, which can drastically threaten reefs. For example, coral reefs are adapted for low-nutrient levels. However, nutrients from fertilizers, pesticides, and sewage, all runoff from human activities, support the growth of algae that blocks the sunlight and oxygen corals need to survive, affecting the entire ecosystem.[10]

Enforcing BMPs consistently across states while tailoring specific practices to different regional environmental conditions would ensure that all coastal states implement effective measures to reduce nonpoint source pollution, preventing states with weaker regulations from contributing to coral reef degradation.[11] Congress could amend the Clean Water Act to mandate these practices among coastal states, thereby limiting states’ ability to administer lax reef-protection policies and ensuring consistent, nationwide efforts to prevent reef degradation.

U.S. coral reefs generate far more economic value than the costs of implementing BMPs, and their decline threatens the livelihoods of many coastal communities. Coral reefs generate $200 million annually in U.S. fisheries and $2 billion through tourism and recreation in Florida and Hawaii. However, if coral bleaches and dies, these industries will suffer: fish populations will decline, and tourism activities like snorkeling will be impacted, harming income for small businesses, tour guides, and restaurants in coastal communities.[12]

Although not all coastal U.S. states have coral reefs, the benefits of mandatory BMPs would be felt by all. Reducing nonpoint source pollution could prevent marine disasters like Harmful Algal Blooms, which kill fish populations and spike healthcare costs by up to $22 million, increasing instances of pneumonia diagnoses and respiratory illness.[13] The same benefits of preserving coral reefs like economic benefits via tourism and fisheries, flood prevention, and protection of marine ecosystems are mirrored by coastal states without coral reefs.[14] Federally mandated BMPs in all coastal states protect coral reefs, marine ecosystems, and can ensure that states with coral reefs avoid pollution from another state through ocean currents or shared water resources.

Despite the disheartening evidence of worsening bleaching events, the degradation of coral reefs through anthropogenic causes is not entirely permanent. When conditions normalize, the algae will return to coral allowing it to steadily regain its health. Congress, through amendments to the Clean Water Act, has the power to encourage stricter implementation of BMPs across coastal states. This could protect U.S. coral reefs from bleaching events by minimizing their exposure to harmful pollutants like pesticides, sewage material, and fertilizers. U.S. coral reefs are imperative to the coastal states’ economic success. By advocating for an amendment of the Clean Water Act, we can help protect the health of delicate coastal ecosystems and ensure the economic stability of American coastal communities.


[1] NOAA. 2025. “Coral Reefs.” Office for Coastal Management. https://coast.noaa.gov/states/fast-facts/coral-reefs.html.

[2]NOAA. 2024. “What is coral bleaching?” National Ocean Service. https://oceanservice.noaa.gov/facts/coral_bleach.html#:~:text=Warmer%20water%20temperatures%20can%20result,bleaches%2C%20it%20is%20not%20dead.

[3] Ibid

[4]“Coastal and Marine Hazards and Resources Program.” 2023. USGS. https://www.usgs.gov/programs/cmhrp/news/coral-bleaching-event-can-increase-flood-risk-economic-losses.

[5]Ibid.

[6]NOAA. n.d. “Reducing Pollution.” coris.noaa.gov. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.coris.noaa.gov/activities/reportcongress2005/chap8_pollution.pdf.

[7]Environmental Protection Agency. n.d. “Forestry Best Management Practices in Watersheds.” cfpub. Accessed March 31, 2025. https://cfpub.epa.gov/watertrain/moduleFrame.cfm?parent_object_id=1522&object_id=1528#:~:text=Because%20nonpoint%20source%20pollution%20causes,selected%20for%20the%20forestry%20activities.

[8] Virginia Department of Conservation and Recreation. n.d. “Nonpoint Source Pollution Best Management Practices.” DCR. Accessed March 31, 2024. Nonpoint Source Pollution Best Management Practices.

[9]US Forest Service. n.d. “Best Management Practices (BMP) Program.” USDA. Accessed March 31, 2025. https://www.fs.usda.gov/naturalresources/watershed/bmp.shtml#:~:text=The%20National%20Best%20Management%20Practices,efforts%20to%20protect%20water%20resources.

[10] USEPA. 2025. “Threats to Coral Reefs.” EPA.gov. https://www.epa.gov/coral-reefs/threats-coral-reefs.

[11]USEPA. 2025. “Nonpoint Source: Agriculture.” USEPA. https://www.epa.gov/nps/nonpoint-source-agriculture#:~:text=Nutrient%20management%20practices%20include%20targeting,information%20on%20these%20conservation%20practices.

[12]NOAA. n.d. “The Total Economic Value of U.S. Coral Reefs: A Review of the Literature.” Coral Reef Information System. Accessed March 31, 2025. https://www.coris.noaa.gov/activities/economic_value/#:~:text=This%20overview%20of%20the%20value,US$%203.4%20billion%20per%20year.

[13] Harmful Algal Blooms- Economic Impacts.” Florida Department of Health. Florida Department of Health, December 19, 2024./https://www.floridahealth.gov/environmental-health/aquatic-toxins/_documents/economic-impacts.pdf.

[14] NOAA. n.d. “Coastal Nonpoint Pollution Control Program.” Office for Coastal Management. Accessed March 31, 2025. https://coast.noaa.gov/czm/pollutioncontrol/.

3 thoughts on “Not Just a Pretty Problem: How Coral Bleaching is an Economic Crisis

  1. This is such an awesome post! I love how you highlighted the economic and environmental value of coral reefs. I feel like coral reef bleaching is often just talked about in terms of environmental value, but discussing its economic importance makes it a priority for multiple political stakeholders. I also agree with the idea of mandatory implementation of BMPs to tackle nonpoint source pollution; however, I’d be interested in learning more about how enforcement mechanisms would operate practically across different states, especially those that might resist stringent measures. Also, do you have examples of coastal regions, either in the U.S. or internationally, that have successfully adopted similar BMPs with measurable positive outcomes for coral health? 

  2. Love how you highlight the importance of this species on people’s livelihoods, and that protecting coral reefs is about much more than aesthetics. I hope that the cost-benefit analysis you provide on the economic value of coral reefs and the industries that are threatened, biodiversity, coastal resilience, and mandatory BMPs, and the point you provide that coral reefs have the ability to recover, become talking points in policy. I think the point that coral reefs have the ability to recover if stressors are reduced force us to confront the reality that it is up to immediate action, especially federal action and controlling nonpoint source pollution, to protect our coasts and coastal communities.

  3. Awesome work here, Niki! As someone who has always loved snorkeling and diving, I admit that I have fallen into the trap of viewing them firstly as ecotourism hubs. But, just as you have highlighted so thoroughly here, our reefs are so much more than this! I appreciate that you have not only presented the crucial statistics of bleaching events, economic provision, and potential for flood mitigation, but have included all of this data into policy suggestions. Your point about all coastal states–even those without coral reefs–benefitting from implementing BMPs is huge, as there are so many other negative consequences of marine pollution that pose real threats to human health and livelihoods in coastal areas. It is unfortunate that so many coral reefs have been experiencing increased stress and bleaching events, but I’m glad there is hope for recovery. I think we can all play a part in advocating for the enforcement of BMPs and investing in the Clean Water Act to protect these ecosystems. I think that is the least we could do considering all they do for us!

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