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The impact of shoreline stabilization on economic growth in small island developing states

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  • Corral, Leonardo R.
  • Schling, Maja

Abstract

This paper assesses the economic growth impact of shoreline stabilization policy in Small Island Developing States. Concentrating on the Barbadian efforts to stem shoreline retreat, it explores whether investments in shoreline stabilization and beach amenity enhancement have beneficial effects on medium-term economic growth. The analysis relies on the synthetic control method as a way to systematically choose comparison units (beach sites), which allows for precise quantitative inference in small-sample studies. Our results indicate that in the first three years after shoreline stabilization works were completed, local economic effects, as measured by nighttime lights data, are positive and indicate a positive trend. Confidence bounds obtained by a bootstrapping method suggest that the positive trend is robust in the last two years post-treatment. Shoreline stabilization works may therefore not only help preserve fragile ecological conditions, but further lead to sustainable growth in the local economy.

Suggested Citation

  • Corral, Leonardo R. & Schling, Maja, 2017. "The impact of shoreline stabilization on economic growth in small island developing states," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 210-228.
    • Handle: RePEc:eee:jeeman:v:86:y:2017:i:c:p:210-228
    DOI: 10.1016/j.jeem.2017.06.001
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    Cited by:

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    2. John Gibson & Susan Olivia & Geua Boe‐Gibson, 2020. "Night Lights In Economics: Sources And Uses," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 955-980, December.
    3. Mitnik, Oscar A. & Sanchez, Raul & Yanez-Pagans, Patricia, 2018. "Bright Investments: Measuring the Impact of Transport Infrastructure Using Luminosity Data in Haiti," IZA Discussion Papers 12018, Institute of Labor Economics (IZA).
    4. Jack, B. Kelsey, 2017. "Environmental economics in developing countries: An introduction to the special issue," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 1-7.
    5. Boslett, Andrew & Hill, Elaine & Ma, Lala & Zhang, Lujia, 2021. "Rural light pollution from shale gas development and associated sleep and subjective well-being," Resource and Energy Economics, Elsevier, vol. 64(C).
    6. Qiu, Yun & Gopalakrishnan, Sathya, 2018. "Shoreline defense against climate change and capitalized impact of beach nourishment," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 134-147.

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    More about this item

    Keywords

    O44; Q54; D04; N56; Shoreline stabilization; Economic growth; Nighttime lights data; Synthetic control; Small island developing states;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean

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