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When the Tide is High: Estimating the Welfare Impact of Coastal Erosion Management

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  • Phillips, Yvonne
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    Abstract

    A choice experiment was undertaken at Buffalo beach, Whitianga, in order to investigate beach visitors’ preferences for various coastal erosion management options. Constructing rock seawalls is a common response to coastal erosion but seawalls can negatively affect visual amenity, biodiversity and recreational values. The choice experiment results from this study show that the average visitor would be willing to pay $20 per year to remove an existing rock wall at either end of Buffalo beach. Visitors place high value on useable sandy beaches and reserve areas behind the beach. A latent class analysis reveals there are distinct sub-groups with varying preferences for beach characteristics. This paper presents a model with separate classes for residents and visitors and the compensating variation estimates to calculate the overall welfare effect for three coastal management scenarios.

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    Bibliographic Info

    Paper provided by New Zealand Agricultural and Resource Economics Society in its series 2011 Conference, August 25-26, 2011, Nelson, New Zealand with number 115414.

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    Date of creation: 2011
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    Handle: RePEc:ags:nzar11:115414

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    Web page: http://www.nzares.org.nz/
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    Keywords: Environmental Economics and Policy;

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    1. R.K. Blamey & J.W. Bennett & J.J. Louviere & M.D. Morrison & J.C. Rolfe, 2002. "Attribute Causality in Environmental Choice Modelling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(2), pages 167-186, October.
    2. Vermeulen, Bart & Goos, Peter & Vandebroek, Martina, 2010. "Obtaining more information from conjoint experiments by best-worst choices," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/255632, Katholieke Universiteit Leuven.
    3. John C. Whitehead & Daniel Phaneuf & Christopher F. Dumas & Jim Herstine & Jeffrey Hill & Bob Buerger, 2007. "Convergent Validity of Revealed and Stated Recreation Behavior with Quality Change: A Comparison of Multiple and Single Site Demands," Working Papers 07-17, Department of Economics, Appalachian State University, revised 2008.
    4. Hausman, Jerry A. & Leonard, Gregory K. & McFadden, Daniel, 1995. "A utility-consistent, combined discrete choice and count data model Assessing recreational use losses due to natural resource damage," Journal of Public Economics, Elsevier, vol. 56(1), pages 1-30, January.
    5. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    6. John C. Whitehead & Christopher F. Dumas & Jim Herstine & Jeffery Hill & Bob Buerger, 2006. "Valuing Beach Access and Width with Revealed and Stated Preference Data," Working Papers 06-15, Department of Economics, Appalachian State University.
    7. Kevin J. Boyle & Thomas P. Holmes & Mario F. Teisl & Brian Roe, 2001. "A Comparison of Conjoint Analysis Response Formats," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 441-454.
    8. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
    9. Small, Kenneth A & Rosen, Harvey S, 1981. "Applied Welfare Economics with Discrete Choice Models," Econometrica, Econometric Society, vol. 49(1), pages 105-30, January.
    10. Breffle, William S. & Morey, Edward R., 2000. "Investigating Preference Heterogeneity In A Repeated Discrete-Choice Recreation Demand Model Of Atlantic Salmon Fishing," Marine Resource Economics, Marine Resources Foundation, vol. 15(1).
    11. Riccardo Scarpa & Mara Thiene, 2005. "Destination Choice Models for Rock Climbing in the Northeastern Alps: A Latent-Class Approach Based on Intensity of Preferences," Land Economics, University of Wisconsin Press, vol. 81(3).
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