Canadian Wildfire Smoke May Have Cost Michigan More Than $4 Billion

Weeks of wildfire smoke drifting into Michigan from Canada may have done more than create hazy skies and unhealthy air. Economists now estimate it cost the state more than $4 billion.

The Anderson Economic Group says the losses reached several major parts of Michigan's economy, including agriculture, tourism, manufacturing, transportation and retail.

How Wildfire Smoke Cost Michigan Billions

When air quality becomes dangerous, people are told to stay inside, outdoor events are postponed, and businesses can lose customers. That happened repeatedly across Michigan as thick smoke triggered several air quality alerts and forced communities to make last-minute changes.

Mid-Michigan was among the areas feeling the impact.

Michigan Industries Hit by Poor Air Quality

Several local events were delayed or rescheduled because of the smoke, including Dam Jam and an '80s-themed event in East Lansing. While many of those events may still happen later, the disruptions can hurt restaurants and other nearby businesses that were expecting larger crowds.

The $4 Billion Estimate May Be Only the Beginning

The CEO of the Anderson Economic Group, Patrick Anderson, said that the estimated $4 billion only includes direct income losses. The final impact could be even higher once health-related costs and other long-term effects are included.

Michigan was not the only state that took a financial hit. The group estimates wildfire smoke cost New York around $5 billion, while Wisconsin lost about $2 billion.

Anderson said the prolonged stretch of poor air quality was unlike anything he could remember seeing in Michigan.

Could Michigan Face Another Expensive Smoke Season?

More than 830 wildfires were still burning across Canada Wednesday as crews continued working to bring them under control.

Economists warn Michigan could face similar losses again if wildfire conditions persist and stronger prevention and management efforts are not implemented during the summer months.