Measuring the Azorean blue economy: a value chain approach

Abstract

Economic activities associated with marine and coastal resources – commonly referred to as the blue economy – play a central role in coastal regions such as Portugal. Despite the Azores' small population and structural constraints, the blue economy holds significant potential for regional development, linked to productive sectors and to the sustainable use and conservation of marine biodiversity. This study quantifies the contribution of maritime-related activities to both regional and national economies, adopting a value-chain perspective that captures not only activities directly carried out at sea but also their systemic intersectoral and interregional effects. Using an interregional input–output framework for Portugal and a partial hypothetical extraction method, the results show that the Azorean blue economy accounts for 0.41% of Portugal's GDP and 16.58% of the Azores' GDP. The hypothetical extraction affects 21,214 jobs nationwide, including over 18,000 in the Azores, and avoids 184.6 kilotons of CO2 emissions. The results also highlight heterogeneous impacts across regions such as Madeira and Lisbon, reflecting differences in productive structures and regional economic integration. The findings underscore the systemic relevance of the Azorean blue economy and provide insights for policies balancing economic development and environmental sustainability.