Volcanic eruptions can be devastating, both in terms of human lives lost and the immense financial toll they take on affected regions. According to a recent study, the average annual property damage from volcanic eruptions worldwide is a staggering $1 billion.
The Astronomical Price Tag of Volcanic Disasters
While the loss of life is the most tragic consequence of volcanic activity, the financial impact can be just as devastating. One study estimates that on average, volcanic eruptions cause $1 billion in property damage globally each year. This figure underscores the sheer scale of destruction that these natural disasters can unleash.
Catastrophic Eruptions and Their Lasting Economic Toll
Some of the most destructive volcanic events have caused truly astronomical economic losses. The 1980 eruption of Mount St. Helens in the United States resulted in over $1 billion in damages, primarily to the timber industry. The 1991 eruption of Mount Pinatubo in the Philippines is estimated to have cost the global economy a staggering $7 billion, with the effects lingering for years due to the inundation of farmland by mudflows.
The Threat to Air Travel and Global Supply Chains
In addition to the immediate damage caused by lava, ash, and other volcanic hazards, eruptions can also disrupt critical infrastructure and supply chains. The threat posed to air travel by high-altitude ash clouds has led to the establishment of a global system to alert pilots and divert flights around dangerous areas. Volcanic events have caused millions in damages to aircraft and forced the grounding of flights, with far-reaching economic consequences.