Continuous Attribute Values in a Simulation Environment: Offshore Energy Production and Mid-Atlantic Beach Visitation

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.