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Abstract

Nearly fifteen months after the British Petroleum (BP) oil spill of April 20, 2010, later characterized as one of the largest accidental oil spills in United States history, BP submitted findings showing that the Gulf economy reached pre-spill activity and declared that the local economies had recovered. BP’s post incident statistics illustrated a vison of a thriving future in the Gulf economy, and subsequently established that there was no longer a need for BP’s continuation of payments to mitigate future risk to the Gulf economy (Supplemental Comments of BP Exploration & Production Inc., 2011). However, can this claim be substantiated?This study divides the state of Florida’s coastline into two zones. With the western portion of the state (Gulf coast) and the eastern portion of the state (Non-Gulf coast) data separated, we can effectively model a valid control and treatment group. These two regions, sharing similar demographics and geography, allow us to implement this approach. By comparing the two Floridian coasts, we look for a common trend pre- spill in pounds harvested, value, and average value, in both magnitude and direction. If similar, this approach allows us to imply the economic impact, if any, post-spill.This analysis finds that when considering National Oceanic and Atmospheric Administration (NOAA) data, results substantiate BP claim showing that average value increased in the Post BP Claim Period for every shrimp species, including in aggregate. Pounds harvested also increased for almost every shrimp species.

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