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When the Tide is High: Estimating the Welfare Impact of Coastal Erosion Management

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  • Phillips, Yvonne

Abstract

A choice experiment was undertaken at Buffalo beach, Whitianga, in order to investigate beach visitors’ preferences for various coastal erosion management options. Constructing rock seawalls is a common response to coastal erosion but seawalls can negatively affect visual amenity, biodiversity and recreational values. The choice experiment results from this study show that the average visitor would be willing to pay $20 per year to remove an existing rock wall at either end of Buffalo beach. Visitors place high value on useable sandy beaches and reserve areas behind the beach. A latent class analysis reveals there are distinct sub-groups with varying preferences for beach characteristics. This paper presents a model with separate classes for residents and visitors and the compensating variation estimates to calculate the overall welfare effect for three coastal management scenarios.

Suggested Citation

  • Phillips, Yvonne, 2011. "When the Tide is High: Estimating the Welfare Impact of Coastal Erosion Management," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115414, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar11:115414
    DOI: 10.22004/ag.econ.115414
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    Cited by:

    1. Allan Beltrán & David Maddison & Robert J. R. Elliott, 2018. "Assessing the Economic Benefits of Flood Defenses: A Repeat‐Sales Approach," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2340-2367, November.
    2. Yue, Ian T. & Swallow, Stephen K., 2014. "Identifying which ecosystem services coastal residents actually value: A choice experiment survey of the Eastern Shore of Virginia regarding climate change adaptation," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 173302, Agricultural and Applied Economics Association.
    3. Beltrán, Allan & Maddison, David & Elliott, Robert J R, 2018. "Is Flood Risk Capitalised Into Property Values?," Ecological Economics, Elsevier, vol. 146(C), pages 668-685.
    4. Christos Makriyannis & Robert J. Johnston & Ewa Zawojska, 2022. "Do numerical probabilities promote informed stated preference responses under inherent uncertainty? Insight from a coastal adaptation choice experiment," Working Papers 2022-05, Faculty of Economic Sciences, University of Warsaw.
    5. Makriyannis, Christos & Johnston, Robert, 2016. "Welfare Analysis for Climate Risk Reductions: Are Current Treatments of Outcome Uncertainty Sufficient?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235532, Agricultural and Applied Economics Association.
    6. Susana Oliveira & Lígia M. Costa Pinto, 2021. "Choice experiments to elicit the users’ preferences for coastal erosion management: the case of Praia da Amorosa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(7), pages 9749-9765, July.

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