BP Deepwater Horizon spill did $17.2 billion in damage
A team of scientists recently found that after a six-year study of the impact of the largest oil spill in U.S. history.
This is the first comprehensive appraisal of the financial value of the natural resources damaged by the 134-million-gallon spill.
"This is proof that our natural resources have an immense monetary value to citizens of the United States who visit the Gulf and to those who simply care that this valuable resource is not damaged," said Kevin Boyle, a professor of agricultural and applied economics in the Virginia Tech College of Agriculture and Life Science and one of the authors on the paper.
Findings from the study are published in the issue of Science released Friday, April 21.
The scientists developed a survey to put a dollar value on the natural resources damaged by the BP Deepwater spill by determining household willingness to pay for measures that would prevent similar damages should a spill of the same magnitude happen in the future.
Survey information included descriptions of damaged beaches, marshes, animals, fish, and coral.
On top of estimating the impact of the spill, the $17.2 billion represents the benefits to the public to protect against damages that could result from a future oil spill in the Gulf of a similar magnitude.
In May 2010, one month after the spill, the U.S. National Oceanic and Atmospheric Administration commissioned a group of 18 researchers to put a dollar value on the natural resources damaged by the BP Deepwater spill.
To estimate Gulf Coast resource values, researchers created a scenario in which people were told that they could have a role in mitigating future damages by effectively paying for a prevention program.
Final analysis showed that the average household was willing to pay $153 for a prevention program. This rate was then multiplied by the number of households sampled to get the final valuation of $17.2 billion.
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