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Economic Values of Coastal Erosion Management: Joint Estimation of Use and Passive Use Values with Recreation Demand and Contingent Valuation Data

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  • Craig E. Landry
  • J. Scott Shonkwiler
  • John C. Whitehead

Abstract

Revealed and stated preference survey data from North Carolina households are utilized to estimate a joint structural microeconometric model of recreation demand and willingness-to-pay (WTP) for coastal erosion management among beach visitors and non-visitors. We test for and reject weak complementarity, implying existence of non-use values associated with management of North Carolina’s coastal resources. We find stronger preferences for shoreline retreat (median WTP = $22.20 per household, per year) as a management strategy relative to beach nourishment (WTP = $7.45) and substantially weaker preferences for shoreline armoring (WTP = $0.09). Shoreline retreat exhibits much larger estimates of non-use values, whereas non-use values for shoreline armoring are negative. Minimizing negative environmental impacts of erosion management increases WTP over 200%. Our data permit estimates of marginal value of incremental beach width accruing to beach users and non-users (which ranges from $0.23 and $0.47 per meter). Key Words: recreation; demand; beach; erosion; management; economic; value

Suggested Citation

  • Craig E. Landry & J. Scott Shonkwiler & John C. Whitehead, 2018. "Economic Values of Coastal Erosion Management: Joint Estimation of Use and Passive Use Values with Recreation Demand and Contingent Valuation Data," Working Papers 18-09, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:18-09
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp1809.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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.

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    More about this item

    Keywords

    recreation; demand; beach; erosion; management; economic; value;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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