PODCAST:
July 22, 2026 ~ Chris Renwick and Lloyd Jackson speak with Anderson Economic Group CEO Patrick Anderson about Canadian wildfire smoke and its impact on the Michigan economy.
MICHIGAN ~ A Michigan East Lansing-based Anderson Economic Group recently published an analysis of how much wildfire smoke may have cost Michigan’s economy this season, putting losses into the billions.
The smoke, which came from raging Canadian wildfires that blanketed much of Michigan and the East Coast for much of last week, caused major air quality dips to “hazardous” levels. Anderson Economic Group’s initial estimates found that Michigan lost $4 billion during the duration of lowered air quality, with Wisconsin losing $2 billion and New York $5 billion.
Michigan’s air quality index returned to a “good” rating as of Wednesday morning.
The economic firm determined the loss amount by calculating the closures of amusement parks, cancellations of outdoor events, closures of event spaces like regional fairs to professional sports arenas, and public park closures. Warnings about working, exercising, or even sitting outside were also a factor, along with workers potentially needing medical attention after smoke inhalation. Dense wildfire smoke and widespread warnings are likely to reduce visits to tourist attractions and traffic to businesses that see customers outside, the firm’s report added.
“We can already observe closures and reduced activity at parks, businesses serving customers in the open air, health clubs, and other locations where people would otherwise be exercising, relaxing, dining, working, or just enjoying the outdoors,” said Richard Melstrom, an environmental economist at Anderson Economic Group. “Our preliminary estimates, based on early data, indicate these losses total in the many billions of dollars.”
