The “sea cost” encompasses the economic aspects linked to oceans and coastal areas. This includes the value generated by marine industries, financial burdens on coastal communities, expenses from environmental hazards, and investments made to preserve ocean health. Understanding these dimensions provides a comprehensive view of the financial relationship between society and the marine environment.
Economic Contributions of Coastal and Marine Sectors
Coastal and marine sectors provide substantial economic value and revenue. Commercial fishing and aquaculture are vital for food supply and employment, contributing over $150 billion annually to the global seafood market and employing an estimated 58 million people worldwide. Maritime transport and logistics are foundational to global trade, handling nearly 80-85% of world trade volume, with container shipping alone accounting for approximately 60% of global trade by value.
Coastal tourism and recreation are another economic driver, contributing around $143 billion in GDP globally each year and supporting local businesses. Offshore energy, including oil and gas extraction and offshore wind farms, further diversifies the marine economy. Marine biotechnology and research are emerging sectors, with marine biotechnology alone valued at $4.2 billion in 2023 and projected to reach $6.4 billion by 2025, driven by innovations like low-carbon marine foods and bio-based materials. These sectors collectively contributed $511 billion to the U.S. gross domestic product in 2023, creating 2.6 million jobs and generating $827 billion in sales.
Financial Challenges of Coastal Living
Living in coastal areas entails financial burdens for residents and communities. Property values and housing markets are often elevated due to proximity to the sea. This desirability, however, increases financial liabilities, particularly for insurance.
Insurance premiums are higher in coastal zones. Flood insurance is a separate, often mandatory expense not covered by standard homeowners policies. The national average annual cost for a flood insurance policy from the federally backed National Flood Insurance Program (NFIP) was $898 as of March 2025, though rates can reach over $1,000 annually in high-risk flood zones. Property maintenance also presents unique challenges; salt air accelerates corrosion of metal components like HVAC systems and electrical wiring, requiring more frequent repairs and replacements compared to inland properties. Coastal homes also contend with sand abrasion and increased humidity, necessitating specialized building materials, regular cleaning, and robust weatherproofing for windows, doors, and roofs to prevent damage and mold growth.
Economic Impact of Coastal Hazards
Coastal regions face significant financial consequences from natural phenomena and environmental changes. Hurricanes and severe coastal storms inflict property destruction, infrastructure damage, and business interruptions. From 1980 to 2021, hurricanes alone caused over $1.1 trillion in damages in the United States, with an average cost of $22.8 billion per event since 1980.
Coastal erosion leads to the loss of land, homes, and public facilities, requiring costly protective measures. Sea level rise exacerbates these issues, requiring investments in adaptation strategies. These include elevating existing structures, constructing new sea defenses like seawalls, and, in some cases, relocating entire communities. The global cost of protecting against sea-level rise could be substantial, with some estimates suggesting adaptation costs could reach hundreds of billions of dollars, for example, up to $453 billion for 2.0 meters of sea-level rise in specific regions. Emergency response and disaster recovery efforts also incur immense financial outlays, including immediate relief, debris removal, and long-term rebuilding.
Investing in Ocean Health and Sustainability
Investing in ocean health and sustainability involves allocating financial resources to protect, manage, and restore marine environments. Pollution control and waste management initiatives address issues like plastic pollution and wastewater. Cleaning up accumulated ocean plastic, such as the Great Pacific Garbage Patch, is estimated to cost around $7.5 billion, while the broader economic damage from ocean plastic pollution could be as high as $2.5 trillion per year.
Marine conservation efforts receive funding for establishing and managing marine protected areas, implementing species recovery programs, and restoring degraded habitats like coral reefs and mangrove forests. Scientific research and monitoring are also supported to better understand ocean ecosystems, assess climate change impacts, and manage fish stocks sustainably. Philanthropic funding for marine conservation more than doubled from $430 million in 2010 to $1.0 billion in 2022, focusing on areas like science initiatives, fisheries and aquaculture, and protected areas. Sustainable resource management, including funding for practices that combat illegal fishing, contributes to the long-term health and productivity of marine resources.