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Port expansion and negative externalities: a willingness to accept approach

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  • Salvador del Saz-Salazar
  • Leandro García-Menéndez

Abstract

Port expansion has been seen as the origin of negative externalities, affecting local residents’ well-being and contributing to the poor public image of ports. In this study, the contingent valuation method is used to estimate the costs borne by local residents as a consequence of the negative externalities derived from the growth of the Port of Valencia (Spain) in the last 30 years. As transport project appraisal has become more complex, this technique complements existing methodologies in this field, such as the social cost benefit analysis and the multicriteria analysis. Given the perceived property rights of families that have been living close to the port for a long time, a willingness to accept (WTA) framework was used. The econometric analysis undertaken reveals that among the different externalities derived from this growth, the only concern that truly affects individuals’ WTA is the reclamation of land from the sea during the port’s expansion. Finally, the results obtained show that the present value of the costs potentially borne by local residents ranges from a minimum value of €64.4 million to a maximum value of €107.4 million, depending of the aggregation criterion chosen.

Suggested Citation

  • Salvador del Saz-Salazar & Leandro García-Menéndez, 2016. "Port expansion and negative externalities: a willingness to accept approach," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(1), pages 59-83, January.
    • Handle: RePEc:taf:marpmg:v:43:y:2016:i:1:p:59-83
    DOI: 10.1080/03088839.2015.1032379
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    References listed on IDEAS

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    1. Kristin M. Jakobsson & Andrew K. Dragun, 1996. "Contingent Valuation and Endangered Species," Books, Edward Elgar Publishing, number 1120.
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    Cited by:

    1. Mimo Draskovic, 2019. "Perception of the Impact of Negative Externalities on the Logistics Development of Adriatic Seaports of Koper, Rijeka and Bar," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(50), pages 228-228, February.
    2. repec:aud:audfin:v:21:y:2019:i:50:p:228 is not listed on IDEAS
    3. Amir Gharehgozli & Nima Zaerpour & Rene Koster, 2020. "Container terminal layout design: transition and future," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 610-639, December.

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