The Economics of a Disaster: The Exxon Valdez Oil Spill

by Bruce M. Owen, David A. Argue, Harold W. Furchtgott Roth, Gloria J. Hurdle, Gale Mosteller

Overview

The Economics of a Disaster represents a major contribution to the understanding of the economics of liability and damages. It is based on the assumption that if people know they can be held responsible for some or all of the costs or damages sustained in an environmental accident, they will change their behavior to make the accident less likely to occur or to reduce the damages should it occur. The work develops a framework to examine and measure changes in market conditions after a disaster, showing the kinds of information that need to be collected and analyzed. Based on the Exxon Valdez case, this work provides an interesting framework for practitioners, specialists, and scholars in the fields of business, economics, law, and environmental studies.

Product Details

ISBN-13:	9780899309873
Publisher:	Bloomsbury Academic
Publication date:	10/20/1995
Pages:	216
Product dimensions:	6.00(w) x 9.00(h) x 0.62(d)
Lexile:	1530L (what's this?)

About the Author

BRUCE M. OWEN is President of Economists Incorporated, a Washington, D.C. consulting firm specializing in antitrust and regulatory issues. He also teaches a seminar on law and economics at Stanford University's Washington campus. Owen has been an expert witness in a number of antitrust and regulatory proceedings, including United States vs. AT&T. In 1992, he headed a World Bank task force that advised the government of Argentina in drafting a new antitrust law. He was also chief economist of the Antitrust Division of the U.S. Department of Justice in the Carter administration, and of the White House Office of Telecommunications Policy in the Nixon administration. Owen is the coauthor of Electric Utility Mergers: Principles of Antitrust Analysis1994).

DAVID A. ARGUE is a senior economist at Economists Incorporated in Washington, D.C. While at Economists Incorporated, he has researched many issues in environmental economics. Previously, he was an economist at the Center for Public Service in Charlottesville, Virginia and taught undergraduate economics.

HAROLD W. FURCHTGOTT-ROTH is a senior economist at Economists Incorporated in Washington, D.C. He was formerly a research fellow at the Brookings Institution and a member of the research staff at the Center for Naval Analyses. His publications include International Trade in Computer Software (Quorum, 1993).

GLORIA J. HURDLE, prior to joining Economists Incorporated in Washington, D.C., spent over 13 years as an economist in the Antitrust Division of the U.S. Department of Justice on the Antitrust Subcommittee of the U.S. Senate, and teaching at the Colorado College, the Eastern Michigan University, and the University of Michigan. She has authored or coauthored a number of articles related to industry structure. She has also testified before the U.S. District Court, the Department of Transportation and the Canadian Competition Tribunal. Her work primarily involves transportation, agriculture, and energy.

GALE MOSTELLER, during her years at Economists Incorporated in Washington, D.C., has provided economic analysis and litigation support to law firms, corporations, and government agencies concerning antitrust issues, transfer pricing, FIFRA data compensation and economic damages from false advertising, securities fraud, and contract breach.

Table of Contents

Figures and Tables
Acknowledgments
Introduction
The Effect of Disaster on Prices of Goods and Services: An Economic Framework
Measuring the Effect of the Exxon Valdez Oil Spill on Alaskan Seafood Prices
Industry Background
Qualitative Evidence Concerning Price Effects
Japanese Consumer Demand
Salmon Benchmark Studies
Salmon Reduced Form Study
Salmon Processor Prices
Non-salmon Species Studies
Supply Effects
Fishing Permit Values
Summary of Results
Conclusion
Appendix 1: A Brief Description of Statistical Terminology
Appendix 2: Modeling Japanese Consumer Demand
Appendix 3: Reduced Form Model for Alaskan Salmon
Appendix 4: Supply Effects
Selected Bibliography
Index

Editorial Reviews

Based on research conducted by Economists Incorporated on behalf of the Trans-Alaska Pipeline Liability Fund, who published the findings in 1991 as An Economic Analysis of the Effect of the Exxon Valdez Oil Spill on Alaskan Seafood Prices. Describes the methods and data of the study, the industry background, Japanese consumer demand, benchmark studies, non-salmon studies, supply effects, the value of fishing permits, and other matters. Concludes that damages from a large accident should be paid for economic as well as physical harm. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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