Weather conditions and outdoor recreation: A study of New England ski areas

•Discrete time survival analysis is employed to study closures of ski areas.•Weather conditions can have direct and indirect effects on survival of ski areas.•Simulation shows effects of changing climate on the closures of ski areas.•Changing climate has influenced the ski industry to become less competitive.•First study to estimate the impact of climate on exit decisions of ski areas

We present a structural model and employ discrete time survival analysis to examine the impact of weather conditions on firms' exit decisions within the New England ski industry. Our results suggest that weather conditions can have significant direct and indirect effects on the closure of ski areas. The results also indicate that larger ski areas are more likely to engage in investment activities to help offset the effects of adverse weather conditions, which tip the odds of success in favor of these ski areas. Consequently, this study shows that climate change may have played a significant role in altering the market structure of the New England ski industry.