Published August 13, 2026 at 7:36 PM EDT

Economic damages from this summer's extended period of wildfire smoke from Canada totaled more than $38 billion across 10 states, according to a study by economist Richard Melstrom for the Anderson Economic Group.

The updated estimate, which included the entirety of the period of the smoke's impact in the U.S., covers 10 U.S. states that were heavily impacted by the smoke event, including Illinois, Indiana, Maryland, Michigan, Minnesota, New Jersey, New York, Ohio, Pennsylvania, and Wisconsin.

AEB is a Michigan-based consulting firm specializing in public policy, business valuation, and market and industry analysis.

Melstrom said Michigan's economic losses, at more than $6.6 billion, were the highest of any of the 10 states that were affected.

"The smoke was dense, and it settled over the state longer," said Melstrom, "so the impact was correspondingly higher."

Researchers say articulate matter from wildfire smoke impairs respiratory health, especially for children, people with asthma and cardiovascular conditions, and the elderly.

It can also be a danger to younger, healthy people who are exercising outdoors, and people whose jobs require outdoor work.

Melstrom said wildfire smoke events can affect economic activity through illness-related work absences, reduced earnings and lowered productivity, business closures, and event cancelations.