Estimating the Ex Ante Recreational Loss of an Oil Spill Using Revealed and Stated Preference Data

Abstract

This article combines data to estimate the ex ante recreational impact of oil spills. Using a unique contingent behavior question, our application highlights the gains in combining stated and revealed preferences. We consider a reduction of the available choice set and perceived site quality. We show that omitting perceived site quality leads to low welfare losses, while omitting alternative specific constants leads to high welfare losses. Overall, we find recreational losses due to potential oil spills in Norway ranging from NOK 347 and NOK 524 (US$32–$49) per person across the four oil spill scenarios.