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

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  • Diaz, Pedro
  • Koundouri, Phoebe
  • Rulleau, Benedique
  • Remoundou, Kyriaki

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

  • Diaz, Pedro & Koundouri, Phoebe & Rulleau, Benedique & Remoundou, Kyriaki, 2012. "Valuing Climate Change Mitigation in Coastal Environments Exposed to Extreme Natural Hazards: A choice experiment simulated for different time horizons," MPRA Paper 122494, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122494
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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.
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    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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    More about this item

    Keywords

    climate change; mitigation measures; choice experiment; coastal area; Spain;
    All these keywords.

    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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