Natural Resource Damage Assessment

ECONorthwest helps clients calculate the values associated with damages to natural resources in many contexts, across the globe.

Despite regulations, safeguards, and other precautions, accidents happen and people incur damages. Over the past 30 years, we have calculated the value associated with damages to natural resources across the globe. More often than not, damages to natural resources are considered in a litigation context. Oil spills, for example, often damage aquatic and coastal habitat across large areas, and the affected entities (e.g., individuals, companies, municipalities) bring suit against those responsible.

The main question in many of these cases is, What is the extent of damages to natural resources, in monetary terms? so that those at fault can be held accountable, and those injured are made whole.

Our staff include Ph.D. economists with the expertise necessary to provide testimony and litigation support in cases where natural resources have been damaged. Some of our relevant experience includes:

• Economic damages to local governments from the Exxon Valdez oil spill.
• Economic damages from the M/V Kyowa Violet oil spill on the Island of Yap, Micronesia.
• Economic benefits of cleaning up a hazardous waste site in Skykomish, Washington.
• Habitat Equivalency Analysis of damages from mining activities at the Tar Creek Superfund Site in Oklahoma.

Each case brings its own set of challenges, and ECONorthwest has experience applying sound, nationally- and professionally-recognized methodologies to identify relevant damages and estimate their value. We have estimated the value of opportunity costs incurred by municipal employees while dealing with the aftermath of spill events. We have conducted habitat equivalency analysis (HEA) to estimate the value of natural resource damages. We work closely with natural scientists to estimate the extent of environmental damages in ecological terms, and the amount of mitigation to restore the ecosystem and cover lost services over time.

Interested in learning more about how ECONorthwest can help you with your next project? Our toolbox is full and our staff enjoy meeting new challenges.