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The Labor Market Impacts of the 2010 Deepwater Horizon Oil Spill and Offshore Oil Drilling Moratorium

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  • Joseph E. Aldy

Abstract

In 2010, the Gulf Coast experienced the largest oil spill, the greatest mobilization of spill response resources, and the first Gulf-wide deepwater drilling moratorium in U.S. history. Taking advantage of the unexpected nature of the spill and drilling moratorium, I estimate the net effects of these events on Gulf Coast employment and wages. Despite predictions of major job losses in Louisiana -- resulting from the spill and the drilling moratorium -- I find that Louisiana coastal parishes, and oil-intensive parishes in particular, experienced a net increase in employment and wages. In contrast, Gulf Coast Florida counties, especially those south of the Panhandle, experienced a decline in employment. Analysis of accommodation industry employment and wage, business establishment count, sales tax, and commercial air arrival data likewise show positive economic activity impacts in the oil-intensive coastal parishes of Louisiana and reduced economic activity along the Non-Panhandle Florida Gulf Coast.

Suggested Citation

  • Joseph E. Aldy, 2014. "The Labor Market Impacts of the 2010 Deepwater Horizon Oil Spill and Offshore Oil Drilling Moratorium," NBER Working Papers 20409, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:20409
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    1. Cano-Urbina, Javier & Clapp, Christopher M. & Willardsen, Kevin, 2019. "The effects of the BP Deepwater Horizon oil spill on housing markets," Journal of Housing Economics, Elsevier, vol. 43(C), pages 131-156.
    2. Zach Raff, 2023. "Identifying the regulator’s objective: Does political support matter?," Public Choice, Springer, vol. 194(3), pages 277-295, March.
    3. Beland, Louis-Philippe & Oloomi, Sara, 2019. "Environmental disaster, pollution and infant health: Evidence from the Deepwater Horizon oil spill," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    4. Robert Forster & Destan Kirimhan & Xiaojin Sun, 2022. "Deepwater Horizon and Mortgage Lending," Working Papers 202219, University of Liverpool, Department of Economics.
    5. Kenneth E. McConnell & Juha V. Siikamäki, 2018. "Seeking External Evidence to Assess Benefit Transfers for Environmental Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(3), pages 555-573, March.

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    More about this item

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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