Quantifying the impact : are coastal areas impoverished by marine pollution?

We propose a methodological framework to assess the causal impact of Harmful Algal Bloom (HAB) events on economic indicators at a territorial level, with special consideration for spatial effects. Using the Mar Menor region in Spain as a case study, we empirically apply our framework. Our findings indicate a significantly negative causal effect of marine pollution resulting from HAB events on income per capita at the census section level. We observe that this effect is exacerbated by spatial interactions among neighboring census sections adjacent to those directly affected by seawater degradation. These results underscore the importance of implementing effective environmental regulations to mitigate seawater pollution and proactive measures to safeguard the well-being of local populations. Our research provides valuable insights for future studies in similar coastal regions.