This paper presents estimates of the economic impacts of cancelled recreational trips to coastal counties in Northwest Florida due to the Deepwater Horizon oil spill in 2010, which were developed for legal claims by the State of Florida. A survey of households in 13 states indicated that 1.88 million planned visitor‐trips to the region were cancelled up to a year after the incident, resulting in a loss of $1.30 billion in visitor spending. Total regional economic losses were estimated at $2.04 billion in industry output, $1.37 billion in value added, and an employment loss of 20,486 job‐years.

Despite recent advances in measuring and compensating for environmental damages, several challenges remain. States have a vested interest in claiming economic damages, especially those that reduce the value of investments. Because place-brand values are considered personal property, Florida may seek additional compensation from the Deepwater Horizon oil spill.

A study was undertaken to determine the effect of water intensive appliances or activities on household water consumption. Activities included in the study were use of the washing machine, dishwasher, swimming pool, and lawn watering. In the majority of cases these activities increased per capita consumption and were statistically significant. Households included in the study were not familiar with water saving devices available in the retail market. Even if tehse appliances were purchased, private economic benefits to the household would be low due to the inexpensive water charges levied. However, aggregate community benefits could be large if new well drilling cost or increase in storage facilities could be avoided. In order to avoid these increased costs, regulation or subsidy programs may be the most efficient policy alternatives available to the communities. Subsidies and regulation could potentially decrease water use and offer alternatives to increasing the water supply.

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