Economic Valuation of Environmental Damages due to the Prestige Oil Spill in Spain

• Published in: Environmental & resource economics Vol. 44; no. 4; pp. 537 - 553
• Main Authors: Loureiro, Maria L, Loomis, John B, Vázquez, Maria Xosé
• Format: Journal Article
• Language: English
• Published: Dordrecht Dordrecht : Springer Netherlands 01.12.2009; Springer Netherlands; European Association of Environmental and Resource Economists; Springer Nature B.V
• Series: Environmental & Resource Economics
• Subjects: Accidents; Computation; Contingent valuation; Damage; Economic models; Economic Policy; Economic statistics; Economic theory; Economics; Economics and Finance; Environment; Environmental cleanup; Environmental Economics; Environmental Law/Policy/Ecojustice; Environmental Management; Estimates; Households; Losses; Oil; Oil spills; Passive use value; Polls & surveys; Q51; Q53; Referendums; Spain; Studies; Valuation; Value; Wildlife; Wildlife losses; Willingness to pay; Spain; USA, Alaska, Valdez; Q51; Wildlife losses; Q53; Contingent valuation; Oil spills; Passive use value
• ISSN: 0924-6460; 1573-1502
• DOI: 10.1007/s10640-009-9300-x

This paper presents a parametric and non-parametric analysis of data from a contingent valuation study (CVM) conducted to estimate environmental use and passive use losses due to the Prestige oil spill. This is the first CVM study conducted in Europe after a large oil spill. The CVM survey was implemented using in person interviews. Mean willingness to pay (WTP) values were computed with both, a parametric and non-parametric approach. Parametric WTP estimation indicates that respondents in the sample are willing to pay about 40.51 € per household to avoid a similar future oil spill in Spain. This implies that on average, the Spanish society places a value of the environmental losses caused by the Prestige oil spill around 574 € million. Non-parametric estimates are slightly higher at 58.08 € per household. WTP results are similar to those obtained in the Exxon Valdez study.