The Economic Perspective 10/17/2025

The Latest Trending Economic, Environmental and Infrastructure News Curated for You by The Balmoral Group

The Balmoral Group provides practical, professional and precise Economics, Data Analytics, and Engineering Consulting services and is part of a globally integrated team.

Happy Friday! 

Welcome Back! This week, the Nobel Prize in economics was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for identifying mechanisms underlying sustained growth. The research identifies technological innovation as a key driver when backed by accurate scientific understanding, allowing technology to be co-opted and improved. The theory of “creative destruction” was also introduced; new, innovative products enter a market and outcompete older institutions – highlighting the importance of properly managing “destruction” to ensure incumbents and interest groups don’t block innovation. While Aghion and Howitt can take credit for the creative destruction concept, Mokyr developed the importance of cultural and political norms shifting to support new ideas over history, allowing for innovation. And on a personal note, Aghion & Howitt's names adorn the textbook holding up your writer's laptop on most days.

In this edition of the Economic Perspective, some of our articles cover endangered species news, such as fiber optic monitoring technology and the outlook of arctic seals, as well as some emissions data, diving into potentially global regulations for shipping. We also have articles highlighting water quality collaboration efforts at the Nooksack watershed in Washington, and budget challenges facing the state's department of transportation.

Our data visualization covers the World Meteorological Organization's (WMO) report on CO2 levels and rates of increase, as well as what they mean for the future.

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Thanks for reading and have a great weekend!

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Acoustic Sensing Technology May Enable Fiber Optic Cables to Monitor Endangered Orcas

On San Juan Island, scientists are hoping that underwater fiber-optic cables can be used to monitor Orca activity. Distributed Acoustic Sensing, or DAS, was originally developed as a monitoring tool that could be used to detect infrastructure problems in underwater pipelines. The fiber-optic cables will be transformed into microphones that will then be able to track whales using auditory queues such as their calls. This technology could reveal valuable information such as how the Orcas respond to ship traffic and climate change, as well as insight into their migration patterns. This experiment could serve as a model for transforming thousands of miles of fiber optic cables around the world into similar monitoring tools, changing the conservation landscape for the remaining some 75 Salish Sea orcas and other endangered species. University of Washington scientists and students alike are continuing developmental efforts by collecting more data and conducting more tests. Read more here.

Shipping Industry May Face Global Green Regulations in an Effort to Decrease Emissions

At the International Maritime Organization (IMO) headquarters, nations from across the globe met to discuss the transition from oil and fossil fuels to a greener approach in the shipping industry. Delaine McCullough with the Ocean Conservancy highlighted the importance of the potential agreement, citing the value of global sanctions and future possibilities of "legally-binding climate action". Over the last decade, shipping emissions have increase in share to about 3% of total global emissions. As trade continues to increase, these numbers are expected to increase along with them. The regulations aim to limit the allowed emissions in shipping procedures and would include fees for every ton of greenhouse gas emitted by ships. Read more here.

Arctic Seals and More than Half of Bird Species are in Trouble on Latest List of Threatened Species

The International Union for Conservation of Nature (IUCN) released their latest Red List of Threatened Species, which details the dire situation of arctic seals and other threatened groups. Accompanying them on the list are a staggering 61% of the world's birds thanks to conflict with invasive species and a myriad of other negative impacts. These animals face deforestation, and adverse climate change effects such as melting ice and habitat destruction, all contributing to their status on the list. Amidst the dire updates, though, Rima Jabado, deputy chair of the IUCN Species Survival Commission encourages us to recognize the roles of both hope and concern, as green turtle numbers make a strong comeback due to conservation efforts. They are proof that with intervention and protection efforts, as well as patience, change is indeed possible. Read more here.

Paris Climate Agreement Curbs the Expected Increase in Global Superhot Days per Year

Climate scientists at World Weather Attribution and the U.S.-based Climate Central team released a study, which is still pending peer-review, that projects an annual increase of 57 superhot days globally by the end of the century. Florida is one of top two states that will see the biggest increase in these superhot days. While this is concerning, it is actually an improvement from previous trajectories. The original increase was 114 additional superhot days, but due to the Paris Climate Agreement and global collaboration, the increase has been revised lower. The study is using assumptions that countries' climate promises are fulfilled and that the world only experiences a 2.6 degree Celsius (4.7 Fahrenheit) increase in average temperatures, compared to the baseline scenario with no Paris agreement. Read more here.

Transboundary Collaboration on Water Quality at Nooksack River Watershed Yields Results

Due to rainwater runoff during the wet season in Washington, fecal bacteria levels tend to rise in waterways, leading to harmful pathogens that pose risks to both human and wildlife health. In a continuing effort to combat this bacteria pollution that has cross-border consequences, the Washington Department of Ecology has renewed a transboundary collaboration group consisting of various Washington departments including the Nooksack Tribe, the British Columbia Ministry of Environment and Parks, and others. They focus on data monitoring and sharing, developing outreach tools and activities, and maintaining communications to stay updated on water quality conditions across the watershed. Results from the collaboration indicate promising improvement, with some places seeing 75 times lower levels of bacteria than previously recorded. Read more here. (Image credit: Washington Department of Ecology)

WSDOT Facing Road Preservation Challenges Amidst Funding Shortages

Continued underfunding for the preservation of roads and bridges in Washington State have resulted in concerns about the Washington State Department of Transportation's (WSDOT) ability to keep up with needs. Estimates put the amount needed for maintenance due to expected wear and tear of road usage at $1.6 billion, with only $900 million being allocated to the department. This amount of funding limits the projects that WSDOT can take on. For example, in 2024, of the 7,900 lane miles that needed to be repaved, only 670 were. Troy Suing, director of capital program development and management for WSDOT, noted that the budget restriction is forcing the department to be reactive to projects instead of proactive, with the preservation backlog growing. Read more here.

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Data Visualization of the Week

CO2 Levels and Growth Rates Hit Record High in New WMO Report

As carbon dioxide (CO2) growth rates continue to increase, the World Meteorological Organization (WMO) released a report detailing the most recent jump ahead of the UN Climate Conference in November. The global average concentration of CO2 saw an increase of 3.5 parts per million (ppm), and according to the WMO report, the annual average level in 2024 was 423.9 ppm. This can be attributed to various factors including less effective CO2 sinks, an increase in global wildfire emissions, and rising global temperature. The graph below from the report depicts Amazon wildfire contributions to CO2 levels, which were highest in 2024, and its Net Biome Exchange (NBE). Read more here. (Image credit: World Meteorological Organization)