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Financial impact of wildfires goes beyond numbers, says UH economist

Kaipo Kīʻaha and Kanaʻi Nakamura
/
Kanaeokana

It's been over two weeks since fires swept through West Maui, burning Lāhainā to the ground. A separate fire burned Upcountry, leaving residents without homes or clean water.

In the midst of all of this, the University of Hawaiʻi's Economic Research Organization is working on an analysis of the impact of the fires on Maui.

Carl Bonham helped found that group in 1997. His voice has been an important part of the grounding of government policy, from the Council on Revenues to informal consultations with government leaders at various levels.

He said UHERO's study is still underway, but the report will likely be out within a few weeks, and it will go far beyond numbers.

"It will focus on everything, from the fact that we've lost schools … and the mental health of people who've been through this incredible trauma, and the environmental disaster that is in front of us right now," Bonham explained.

"And you know, the list of things that you have to consider is so long, that it really feels somewhat overwhelming."

Maui's economy is more dependent on tourism than any of the other Hawaiian islands, according to Bonham. He feels that federal aid given to individuals will not be enough to offset the financial losses of the entire island.

"They could claim unemployment benefits, but the unemployment benefits have a short lifespan, and in many cases, it's not full replacement," he said.

"If you're working days in a restaurant and nights bartending in Kīhei, or wherever, and you lose your job, or your hours get cut back, the FEMA money isn't going to help you."

Housing has also been a major issue in the aftermath of the wildfires. Bonham wants to remind people that the housing crisis in Hawaiʻi goes far beyond the disaster in Lāhainā, and the solution should be a comprehensive one.

In the short-term, he suggests that policymakers prioritize centralized communities for displaced residents, "where you have temporary housing and services. … You've got to have mental health, you need childcare, you need transportation."

In the face of the disaster, Bonham remains cautiously optimistic about Maui's circumstances.

"I think there's good reason for hope," he said. "I have little doubt that we will recover and we can choose that path as a community."

This interview aired on The Conversation on August 25, 2023. The Conversation airs weekdays at 11 a.m. on HPR-1. This interview was adapted for the web by Emily Tom.

Bill Dorman has been the news director at Hawaiʻi Public Radio since 2011.
Emily Tom was a temporary digital news producer in summer 2023 and an intern in summer 2022.
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