Weathering the Storm: Measuring Household Willingness-to-Pay for Risk-Reduction in Post-Katrina New Orleans
AbstractThe city of New Orleans suffered extensive damage as a result of Hurricane Katrina. Katrina overwhelmed the natural and built environment, inundating the city. As rebuilding proceeds, decisions on investment in protective measures will include the choice of lines of defense and the storm severity that design criteria should meet. An exhaustive list of protective measures has been studied in planning documents such as the Louisiana Coastal Protection and Restoration Technical Report (2009), with public comment solicited in town hall meetings. In this study we employ a different approach to examine public sentiment towards the selection and investment in protective measures. Our study utilizes a stated choice experiment with a stratified sample to investigate individuals’ willingness-to-pay for rebuilding New Orleans’ man-made storm defenses, restoring natural storm protection, and improving evacuation options through a modernized transportation system. We target residents of the New Orleans metropolitan area as well as other US citizens. Our results indicate that individuals are willing-to-pay for increased storm protection for New Orleans, but the allocation of these resources differs among residents of the New Orleans metro area and other US citizens. Key Words: storm surge mitigation, conjoint analysis, willingness to pay, Hurricane Katrina, flood control, stated choice, rebuilding New Orleans, recovery
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Bibliographic InfoPaper provided by Department of Economics, Appalachian State University in its series Working Papers with number 09-18.
Date of creation: 2009
Date of revision:
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Postal: Thelma C. Raley Hall, Boone, North Carolina 28608
Web page: http://www.business.appstate.edu/departments/economics/
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Other versions of this item:
- Craig E. Landry & Paul Hindsley & Okmyung Bin & Jamie B. Kruse & John C. Whitehead & Ken Wilson, 2011. "Weathering the Storm: Measuring Household Willingness-to-Pay for Risk-Reduction in Post-Katrina New Orleans," Southern Economic Journal, Southern Economic Association, vol. 77(4), pages 991-1013, April.
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-16 (All new papers)
- NEP-DCM-2009-08-16 (Discrete Choice Models)
- NEP-ENE-2009-08-16 (Energy Economics)
- NEP-ENV-2009-08-16 (Environmental Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Are the NOLA levees worth the cost?
by John Whitehead in Environmental Economics on 2010-08-24 21:08:34
- Like a freshly cut lawn
by John Whitehead in Environmental Economics on 2009-08-21 12:43:14
- Kousky, Carolyn, 2012. "Informing Climate Adaptation: A Review of the Economic Costs of Natural Disasters, Their Determinants, and Risk Reduction Options," Discussion Papers dp-12-28, Resources For the Future.
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