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Estimating Lost Recreational Use Values of Visitors to Northwest Florida due to the Deepwater Horizon Oil Spill Using Cancelled Trip Data

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Listed:
  • John C. Whitehead
  • Tim Haab
  • Sherry L. Larkin
  • John B. Loomis
  • Sergio Alvarez
  • Andrew Ropicki

Abstract

The lost recreational use values from the BP/Deepwater Horizon oil spill in the Gulf of Mexico were estimated from cancelled recreational trips to Northwest Florida. The impacts were calculated using the travel cost method for a single site with primary data collected from an online survey conducted after the spill. The data were collected in August and September 2011 with respondents residing in 13 US states that constitute the primary domestic market for coastal tourism to Northwest Florida. The survey gathered information from respondents on their recreational visits, including detailed information on their past trips and the number of trips cancelled to the study region due to the oil spill. The empirical analysis involves the estimation of a random parameter negative binomial count data demand model. Using this model we find significant preference heterogeneity surrounding the effects of the oil spill. Aggregate damages are estimated to be $207 million.

Suggested Citation

  • John C. Whitehead & Tim Haab & Sherry L. Larkin & John B. Loomis & Sergio Alvarez & Andrew Ropicki, 2018. "Estimating Lost Recreational Use Values of Visitors to Northwest Florida due to the Deepwater Horizon Oil Spill Using Cancelled Trip Data," Marine Resource Economics, University of Chicago Press, vol. 33(2), pages 119-132.
    • Handle: RePEc:ucp:mresec:doi:10.1086/697560
    DOI: 10.1086/697560
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    Cited by:

    1. Voltaire, Louinord & Koutchade, Obafèmi Philippe, 2020. "Public acceptance of and heterogeneity in behavioral beach trip responses to offshore wind farm development in Catalonia (Spain)," Resource and Energy Economics, Elsevier, vol. 60(C).
    2. Xie, Lusi & Adamowicz, Wiktor & Lloyd-Smith, Patrick, 2023. "Spatial and temporal responses to incentives: An application to wildlife disease management," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    3. John C. Whitehead, 2024. "They doth protest too much, methinks: Reply to “Reply to Whitehead”," Working Papers 24-04, Department of Economics, Appalachian State University.

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