One of the topics my group my maybe potential focusing on is the economics of oil spills. Before the BP oil spill happened in the Louisiana’s marshlands, people like Randy Borne were able to catch about seventy dozen wire crates blue crabs a day. The business that he conducted from his own back yard was doing exceptionally well. However, in present times after the BP oil spill which was the worst offshore oil spill in US history happened, his ability to catch the crabs dwindle. In a usually day where he was able to catch seventy creates of this animals came down to just twelve. Many business based of the marshlands have suffered a significant loss in profit. And BP has paid out about $10 billion across five states to these small business owners.
This relates to our class because the oil spill has caused not only a lack of water in these lands. The “payments don’t fully account for the spill’s knock-on effects, economists say. A bait shop owner, for instance, whose customers disappeared in 2010 likely steered clear of restaurants or skipped family vacations, dampening the income of retail and tourist shops”. This shows how the lack of just one resource can effect a whole economy. The long term impact to these resources may not be known for decades to come. As well as the wait for BP to review the claims done to these individual business owners.
http://www.ibtimes.com/bp-oil-spill-has-lasting-economic-toll-five-years-after-deepwater-horizon-explosion-1883832