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Estimating the Indirect Economic Costs to Shrimp Consumers from the 2010 Deepwater Horizon Gulf Coast Oil Spill

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  • Ellis, Addison
  • Kropp, Jaclyn D.
  • Norton, Michael T.

Abstract

In this paper, we estimate the indirect economic losses to U.S. shrimp consumers as a result of the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Using a combination of national fisheries market data and the results of an experimental auction, we identify three sources of economic damages to shrimp consumers: (1) higher prices paid by consumers for shrimp in 2010, (2) a loss of utility in the form of substituting consumption of preferred wild-caught Gulf shrimp with less-preferred substitutes, and (3) a loss in utility in the form of stigma attached to wild-caught Gulf shrimp.

Suggested Citation

  • Ellis, Addison & Kropp, Jaclyn D. & Norton, Michael T., 2013. "Estimating the Indirect Economic Costs to Shrimp Consumers from the 2010 Deepwater Horizon Gulf Coast Oil Spill," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142576, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea13:142576
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    File URL: http://purl.umn.edu/142576
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    References listed on IDEAS

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    1. Christopher Kanter & Kent D. Messer & Harry M. Kaiser, 2009. "Does Production Labeling Stigmatize Conventional Milk?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1097-1109.
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    6. Henry, Mark S. & Rhodes, Raymond J. & Eades, Daniel C., 2008. "The Flow of South Carolina Harvested Seafood Products through South Carolina Markets," Research Reports 112799, Clemson University, Department of Agricultural and Applied Economics.
    7. Maurie J. Cohen, 1995. "Technological Disasters and Natural Resource Damage Assessment: An Evaluation of the Exxon Valdez Oil Spill," Land Economics, University of Wisconsin Press, vol. 71(1), pages 65-82.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. How much did the Gulf Oil Spill cost to shrimp consumers?
      by Economic Logician in Economic Logic on 2013-03-07 21:27:00

    More about this item

    Keywords

    Becker-Degroot-Marschak; Gulf Coast oil spill; shrimp; stigma; willingness to pay; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; Risk and Uncertainty; Q22; Q21; Q54;

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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