Red Tide Occurrence and Its Socioeconomic Impacts: Case of the Municipality of Puerto Montt, Chile

Abstract

In 2016, in the Chilean commune of Puerto Montt, located in the Los Lagos region, the natural disaster known as the Red Tide took place due to the proliferation of one or several species of microalgae. This phenomenon has led to diverse losses affecting economic output, the level of household income, and employment. Numerous studies have analyzed the effects of natural disasters, primarily from an economic point of view, but there are few that also incorporate the effects on families, who have seen their income diminish or have experienced the effects of rising unemployment. In this work, we evaluate these impacts, putting special emphasis on the socioeconomic side of the effects of a natural phenomenon. The methodology applied for this purpose is the input-output analysis, given its potential for extending the consideration of intersectoral relations with the incorporation of families. An extended input-output model has been applied, considering families as an endogenous sector, and, additionally, employment multipliers have been calculated to quantify the repercussions that the Red Tide has had on this aspect of the affected area.