Valuing Beach Recreation Lost in Environmental Accidents

Abstract

This paper reviews methods that can be used to estimate the loss in use value associated with saltwater beach recreation in the case of an environmental accident, such as an oil spill. Particular attention is focused on methods for verifying beach attendance data and on transferring benefit estimates from other locales. The paper first reviews methods for estimating what reported attendance might have been had the accident not occurred. The next issue considered is how to verify reported attendance data and how to correct it when systematic inaccuracies are found. The paper then turns to the question of valuing a beach visit and reviews the relevant empirical literature.