Continuous Attribute Values in a Simulation Environment: Offshore Energy Production and Mid-Atlantic Beach Visitation
Date
2017-06
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Applied Economics and Statistics, University of Delaware, Newark, DE.
Abstract
This research measures the welfare losses to beachgoers from the visual disamenity associated with offshore energy projects. We use a contingent-behavior approach in a field setting wherein respondents use a simulation to control the placement of offshore wind turbines and/or oil platforms in their choices. Our model allows for valuation results with continuous, instead of discrete, spatial resolution. We analyze the data using a duration or survival model consistent with random utility theory and recover an expression for willingness-to-pay as a function of distance of shore. We find three distinct clusters of participant responses. Most participants were relatively accepting of the wind turbines and had a much more elastic damage function as compared to oil platforms. On the other hand, a minority of participants displayed a strong aversion to any offshore installations, and had a higher level of damage from turbines instead of oil platforms.
Description
Keywords
Offshore energy, Nonmarket valuation, Renewable energy