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Pricing Coastal Amenities and Flood Hazards

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  • Zhenshan Chen
  • Charles A. Towe

Abstract

Coastlines bring precious amenities to residents, but they also have significant and growing risks from storms and rising sea levels. Disentangling these amenities and risks is of ever-increasing importance to the public and policy makers. Evaluating the most tangible aspect of coastal living in New England, we present a scalable way to construct parcel-specific measures of coastal amenities. Estimates suggest that good coastal amenities, represented by unobstructed ocean views, add about 33%–69% to property prices. Coastal hazard effects are separated from the amenities: the flood zone discounts in coastal Connecticut and Massachusetts are generally low.

Suggested Citation

  • Zhenshan Chen & Charles A. Towe, 2024. "Pricing Coastal Amenities and Flood Hazards," Land Economics, University of Wisconsin Press, vol. 100(1), pages 109-126.
    • Handle: RePEc:uwp:landec:v:100:y:2024:i:1:p:109-126
    Note: DOI: https://doi.org/10.3368/le.100.1.102022-0085R
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    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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