Lost Use-Value from Environmental Injury When Visitation Drops at Undamaged Sites: Reply

Abstract

Survey responses show that beachgoers at unoiled beaches did not experience a loss in utility, which is consistent with the assumption underlying our proposed correction to welfare calculations at undamaged beaches. English, Tourangeau, and Horsch claim that the government’s estimate of loss will still be correct even in this case, but they do not provide support for this assertion. They propose an alternative behavioral model based on unobserved perceptions that can produce any welfare loss ranging from our estimate to the government’s estimate. However, the actual welfare loss under this alternative behavioral model cannot be identified empirically. (JEL D61, D81)