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Valuing Climate Change Mitigation in Coastal Environments Exposed to Extreme Natural Hazards: A choice experiment simulated for different time horizons

Author

Listed:
  • Pedro Diaz
  • Phoebe Koundouri

    (Dept. of International and European Economic Studies, Athens University of Economics and Business)

  • Benedique Rulleau
  • Remoundou Kyriaki

    (University of Newcastle)

Abstract

This paper contributes to the limited literature of monetary valuation of the effects of natural hazards. In particular, we focus on natural hazards caused by climate change and measure willingness to pay (WTP) to avoid relevant environmental and health risks in coastal environments. We also allow short, medium and long term for the effects of mitigation measures, in order to investigate differences and/or similarities in people�s WTP for these different time horizons. A choice experiment is used and implemented in Stantander, Spain, a coastal region that faces a number of significant challenges due to climate change: (a) vulnerability to marine dynamics, with effects on its beaches (and their role as focal locations for social and touristic activities) as well as built environment and businesses, (b) loss of marine biodiversity and (c) increase in exposure to medusas and other dangerous and alien species present on the beaches, which result to restriction of bathing activities due to health risks. Finally, the empirical results from this paper provide useful insights with regards to the development of optimal (economically efficient, socially acceptable and environmentally sound) risk insurance schemes against extreme natural hazards.

Suggested Citation

  • Pedro Diaz & Phoebe Koundouri & Benedique Rulleau & Remoundou Kyriaki, 2012. "Valuing Climate Change Mitigation in Coastal Environments Exposed to Extreme Natural Hazards: A choice experiment simulated for different time horizons," DEOS Working Papers 1203, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:1203
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    File URL: http://wpa.deos.aueb.gr/docs/ExtremeNaturalHazards.doc
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    References listed on IDEAS

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    1. W. J. W. Botzen & J. C. J. M. Van Den Bergh, 2008. "Insurance Against Climate Change and Flooding in the Netherlands: Present, Future, and Comparison with Other Countries," Risk Analysis, John Wiley & Sons, vol. 28(2), pages 413-426, April.
    2. Alberto Longo & David Hoyos & Anil Markandya, 2012. "Willingness to Pay for Ancillary Benefits of Climate Change Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 119-140, January.
    3. Robert E. O'Connor & Richard J. Bard & Ann Fisher, 1999. "Risk Perceptions, General Environmental Beliefs, and Willingness to Address Climate Change," Risk Analysis, John Wiley & Sons, vol. 19(3), pages 461-471, June.
    4. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    5. Sonia Akter & Jeff Bennett, 2011. "Household perceptions of climate change and preferences for mitigation action: the case of the Carbon Pollution Reduction Scheme in Australia," Climatic Change, Springer, vol. 109(3), pages 417-436, December.
    6. Brouwer, Roy & van Ek, Remco, 2004. "Integrated ecological, economic and social impact assessment of alternative flood control policies in the Netherlands," Ecological Economics, Elsevier, vol. 50(1-2), pages 1-21, September.
    7. Jeff Bennett & Russell Blamey (ed.), 2001. "The Choice Modelling Approach to Environmental Valuation," Books, Edward Elgar Publishing, number 2028.
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    Cited by:

    1. Phoebe Koundouri & Osiel Gonzalez Davila, 2013. "The Use of Ecosystem Services Approach in Guiding Water Valuation and Management: Inland and Coastal Waters," DEOS Working Papers 1334, Athens University of Economics and Business.

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    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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