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Center for the Blue Economy Sign
Center for the Blue Economy Sign on the Craig Building, at the Middlebury Institute of International Studies

The Center for the Blue Economy was founded in 2011. We are committed to creating original research and providing free, open-access data and analysis for business, government, and NGOs to make informed decisions as they sustainably manage ocean and coastal resources.

What is the “Blue Economy”?

The “Blue Economy” is now a widely used term around the world with three related but distinct meanings—the overall contribution of the oceans to economies, the need to address the environmental and ecological sustainability of the oceans, and the ocean economy as a growth opportunity for both developed and developing countries.

Center for the Blue Economy research addresses issues with a particular focus on helping organizations understand how to measure the size and changing nature of economic relationships with the oceans in order to guide choices and monitor progress.

The field of climate-change adaptation economics is relatively new and seeks to identify ways to choose the most beneficial approaches to coping with sea level rise and related changes in ocean systems by combining perspectives from different areas of economics. These include risk and investment analysis, regional economics, the measurement of ecological values, and finance. The economic questions that must be answered are becoming clear to researchers but are still on the outskirts of policy attention in most parts of the U.S. and the world.

Charles Colgan and Judith Kildow
Dr. Charles Colgan and Dr. Judith Kildow

History and Methodology

“What does the ocean lend to the U.S. Gross Domestic Product?” This was the fundamental question that Dr. Judith Kildow, then a professor at MIT, was determined to answer. No one before her had stuck with the question long enough to find a definitive answer. With her perseverance and partnership with economist Dr. Charles Colgan, they innovated an entirely new field of study called ocean economics, founding the National Ocean Economics Program (NOEP) in 1999. Their methodology is now the standard for studying the Blue Economy around the world. Finding a permanent home for this data was part of the impetus for the founding of the Center for the Blue Economy in 2011. We measure two distinct subsets of the Blue Economy—the Ocean Economy and the Coastal Economy.

Image showing components of the ocean economy
(Credit: National Oceanic and Atmospheric Administrations’ Office of Coastal Management )
How Big Is the Ocean Economy Graph
(Credit: State of the U.S. Ocean and Coastal Economies, 2016 Update, published by CBE's National Ocean Economics Program )

The ocean economy is a larger share of U.S. Gross Domestic Product (GDP) than agriculture and food production, oil and gas, and forestry. More than $359 billion (out of $16 trillion) is generated annually, providing three million jobs (out of 133 million) as of the last data update.

A Note on Data Sources: All of the data reported in our National Ocean Economics website and publications, with the exception of the Arctic data, is sourced from trusted public sources, including the Bureau of Labor Statistics, Bureau of Economic Analysis, Census Bureau, National Oceanic and Atmospheric Administrations (NOAA) Office of Coastal Management, NOAA Fisheries, and Department of Interior. We use some state-level data from Alaska, Texas, Louisiana, California, Mississippi, and Alabama for oil and gas numbers, and beach-nourishment data from West Carolina University.

What Is the Coastal Economy
Visual defining the Coastal Economy (Credit: State of the U.S. Ocean and Coastal Economies, 2016 Update, published by CBE's National Ocean Economics Program )
Graph showing coastal economy is huge 83.7% total US GDP
(Credit: State of the U.S. Ocean and Coastal Economies, 2016 Update, published by CBE's National Ocean Economics Program )

Stunning Statistics: The coastal economy, when taken as all economic activity of the 30 coastal states, generates 83.7 percent of total U.S. Gross Domestic Product (GDP). In fact, $13.2 trillion of $15.8 trillion, and 111 million jobs out of 136 million total U.S. jobs, are generated in the coastal states. And 259 million people of a total population of 318 million people in the U.S. live in the coastal states. Even when minimized to the coastal county level, the coasts are the clear economic drivers of the nation's economy.

Retired U.S. Congressman Sam Farr

Ocean Acidification and the Power of Numbers

In 2015, then U.S. Congressman Sam Farr (D-CA, now retired), along with Don Young (R-AK) and Lois Capps (D-CA), introduced the Federal Ocean Acidification Research and Monitoring (FOARAM) Act. It was vital and timely that each member of the U.S. Space, Science, and Technology Committee see the importance of the ocean economy for their districts. “The strength of our economy is directly tied to the health of our oceans,” said Rep. Farr in an article on his website. “Ocean acidification is not just a coastal problem; it threatens our entire national economy. We need to develop solutions to the problem of ocean acidification right now to protect our greatest natural resource and the industries it supports.”

The Center for the Blue Economy stepped up to the task and completed the congressional district reports, no easy feat given that districts can cross multiple counties and municipalities. See the full report at Congressional District One-Page Ocean Economies Summary Report. As of June 2016, the U.S. Space, Science, and Technology Committee voted to allocate $10.5 million towards NOAA's research and planning regarding ocean acidification. For the first time ever, official language was added to the report that encouraged NOAA to continue projects like FOARAM. Thank you for your collective efforts, Congressman Farr and Center for the Blue Economy team!

Dr. Judith Kildow, founder of the National Ocean Economics Program standing next to Dr. Jason Scorse, Director of the Center for the Blue Economy
(Credit: Rachel Christopherson )

Dr. Judith Kildow: Innovator

In 2018, Dr. Judith Kildow transitions from full-time director of the National Ocean Economics Program to “retired academic,” meaning she will likely be busier than ever. We look forward to working with Dr. Kildow in her continued role as Center for the Blue Economy Advisory Council member. On the heels of her successful NSF-funded “Arctic Economics Workshop,” she is pursuing further grants to spur economic studies of the Arctic, continuing to pursue her ever forward-thinking endeavors. Dr. Jason Scorse, director of the Center for the Blue Economy, is now tasked with shepherding the National Ocean Economics Program data-set into the future. Honoring Dr. Kildow at a recent advisory council meeting he said, “Among my friends we say, ‘If I have one original thought in my lifetime, I’ll consider my life worthy.’ To contribute something new to the world is a rare thing. Judy, along with Charlie, created a new field of inquiry for the world, a new tool for the world. Very few will look back at their life and see this level of innovation.”

Thank you, Dr. Kildow, for your immense contribution to the world.