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The coast of Brittany is a densly populated and highly touristic area, renowned for its beautiful wild shorelines. Sadly, in December 1999, the tanker Erika sank off the coast of Brittany, in France, creating an oil spill with major environmental impacts on the nearby shoreline.
a) Propose a revealed preference method that you could use to value those damages, and explain how you would proceed in applying this method. Can that method alone give you a value that accounts for all the impacts of the disaster?
b) Propose a different revealed preference method that you could also use to value those damages, and explain how you would proceed in applying this method. Can that method alone give you a value that accounts for all the impacts of the disaster?
c) Propose a stated preference method that you could use to value those damages. Write down the exact WTP question that you would ask within the survey (there are many correct answers to this question), and explain briefly any advantage from the specific formulation that you chose. What population would you choose your sample from? Can that method alone give you a value that accounts for all the impacts of the disaster?
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