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Abstract
Excerpt: The Mississippi River System (MRS) plays a vital role in moving agricultural goods and other commodities efficiently and sustainably. In recent years, the MRS has faced escalating challenges, including disruptions caused by extreme weather events (e.g., flooding, droughts, hurricanes) and disruptions from aging infrastructure. For instance, in 2022, water levels along the MRS dropped to record lows, forcing tow boats to move fewer and lighter barges than normal. Barge movements to the U.S. Gulf slowed, and spot rates rose to record highs. Disruptions to the MRS vary in severity, location, and duration. Understanding their nature and impact is crucial for shipping, planning, and investment decisions. The researchers provide an empirical assessment of the regional economic consequences of MRS disruptions (drought, fog, flood, snow and ice, other weather conditions, system failure, system maintenance, and water level), focusing on the Upper Mississippi River-Illinois River (UMR-IR) region comprising five states (Illinois, Iowa, Missouri, Minnesota, and Wisconsin).