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Paying to save the beach: effects of local finance decisions on coastal management

Author

Listed:
  • Megan Mullin

    (Duke University
    Duke University)

  • Martin D. Smith

    (Duke University
    Duke University)

  • Dylan E. McNamara

    (University of North Carolina)

Abstract

As sea level rises and storm frequency and severity increase, communities worldwide are investing in coastline management projects to maintain beach widths and dunes that support recreational amenities and mitigate storm risks. These projects are costly, and differences in property owners’ returns from maintaining wide beaches will influence community-level support for investment in shoreline defense. One way to account for these differences is by funding the project through a tax instrument that imposes the heaviest cost on residents who benefit most from beach nourishment. Some communities along the US east coast have adopted this approach. We use an agent-based model to evaluate how the imposition of project costs affects coastline management over the long-term. Charging higher tax rates on oceanfront properties reduces desired beach width among those owners but increases desired width for owners of inland properties. The aggregate impact on beach width depends on coastline shape and development patterns that determine the balance between these two groups, heterogeneity of beach width preferences and climate change beliefs, and levels of participation in local politics. Overall, requiring property owners who benefit most from beach nourishment to bear the highest cost results in wider beaches. The result suggests that delineating tax rates to account for unequal benefits of local public goods across taxpayers could facilitate local investment in climate change adaptation.

Suggested Citation

  • Megan Mullin & Martin D. Smith & Dylan E. McNamara, 2019. "Paying to save the beach: effects of local finance decisions on coastal management," Climatic Change, Springer, vol. 152(2), pages 275-289, January.
    • Handle: RePEc:spr:climat:v:152:y:2019:i:2:d:10.1007_s10584-018-2191-5
    DOI: 10.1007/s10584-018-2191-5
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    References listed on IDEAS

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    Cited by:

    1. Jlenia Di Noia, 2022. "Agent-Based Models for Climate Change Adaptation in Coastal Zones. A Review," Working Papers 2022.20, Fondazione Eni Enrico Mattei.
    2. Alexandra Toimil & Iñigo J. Losada & Moisés Álvarez-Cuesta & Gonéri Cozannet, 2023. "Demonstrating the value of beaches for adaptation to future coastal flood risk," Nature Communications, Nature, vol. 14(1), pages 1-11, December.
    3. Dylan E. McNamara & Martin D. Smith & Zachary Williams & Sathya Gopalakrishnan & Craig E. Landry, 2024. "Policy and market forces delay real estate price declines on the US coast," Nature Communications, Nature, vol. 15(1), pages 1-16, December.
    4. Di Noia, Jlenia, 2022. "Agent-Based Models for Climate Change Adaptation in Coastal Zones. A Review," FEEM Working Papers 322810, Fondazione Eni Enrico Mattei (FEEM).
    5. Andrew G. Keeler & Megan Mullin & Dylan E. McNamara & Martin D. Smith, 2022. "Buyouts with rentbacks: a policy proposal for managing coastal retreat," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 12(3), pages 646-651, September.

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