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Household Preferences for Managing Coastal Vulnerability: State vs. Federal Adaptation Fund

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  • Tanvir Pavel

    (Florida International University)

  • Pallab Mozumder

    (Florida International University)

Abstract

People living in the coastal areas are highly vulnerable to the extreme weather events and climatic shocks. In this paper, we analyze households’ willingness to pay (WTP) for public adaptation funds to support proactive measures that would potentially minimize the extent of coastal vulnerability. Using split-sample dichotomous choice contingent valuation (CV) method, we investigate households’ preference for a state adaptation fund (SAF) versus a federal adaptation fund (FAF), lasting for either 5 or 10 years. We analyze more than 1200 randomly selected household responses from the counties of 10 Northeastern and Mid-Atlantic States that were adversely affected by a major hurricane (Sandy). From the annual estimates of median WTP, we observe that the households are willing to pay more for SAF ($68.37) than FAF ($27.35). The findings can provide inputs for policy evaluation to minimize coastal vulnerability, particularly to decide whether similar projects should be managed at the state or federal levels.

Suggested Citation

  • Tanvir Pavel & Pallab Mozumder, 2019. "Household Preferences for Managing Coastal Vulnerability: State vs. Federal Adaptation Fund," Economics of Disasters and Climate Change, Springer, vol. 3(3), pages 281-304, October.
    • Handle: RePEc:spr:ediscc:v:3:y:2019:i:3:d:10.1007_s41885-019-00046-y
    DOI: 10.1007/s41885-019-00046-y
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    2. Orkideh Gharehgozli & Peyman Nayebvali & Amir Gharehgozli & Zaman Zamanian, 2020. "Impact of COVID-19 on the Economic Output of the US Outbreak’s Epicenter," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 561-573, October.
    3. Ivan Petkov, 2023. "Public Investment in Hazard Mitigation: Effectiveness and the Role of Community Diversity," Economics of Disasters and Climate Change, Springer, vol. 7(1), pages 33-92, March.

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