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Wind Turbines and Coastal Recreation Demand

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  • Craig E. Landry
  • Tom Allen
  • Todd Cherry
  • John C. Whitehead

Abstract

We examine the impact of coastal wind turbines on coastal tourism and recreation for residents of the northern CAMA counties in North Carolina. A combination of telephone and web survey data are used to assess the impact of coastal wind farms on trip behavior and site choice. Most of the respondents to our telephone survey claim to support offshore wind energy development, and independent survey data suggest that the observed levels of support may be indicative of the broader population in this region. Overall, we find very little impact of coastal wind turbines on aggregate recreational visitation; loss in consumer surplus associated with wide spread wind development in the coastal zone is insignificant at $17 (or about 1.5%). Results suggest that NC coastal residents are averse to wind farms in the near-shore zone; average compensating variation for wind farms one mile from the shore is estimated at $55 per household. On average, we find no evidence of aversion to wind farms 4 miles out in the ocean, or for wind farms located in coastal estuaries. For all wind farm scenarios, we find evidence of preference heterogeneity– some respondents find this appealing while others find it aversive. Key Words: Recreation demand, tourism, renewable energy

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File URL: http://econ.appstate.edu/RePEc/pdf/wp1014.pdf
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Bibliographic Info

Paper provided by Department of Economics, Appalachian State University in its series Working Papers with number 10-14.

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Date of creation: 2010
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Handle: RePEc:apl:wpaper:10-14

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Postal: Thelma C. Raley Hall, Boone, North Carolina 28608
Phone: 828-262-2148
Fax: 828-262-6105
Web page: http://www.business.appstate.edu/departments/economics/
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References

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  1. John C. Whitehead & Timothy C. Haab & Ju-Chin Huang, 1999. "Measuring Recreation Benefits of Quality Improvements with Revealed and Stated Behavior Data," Working Papers 9902, East Carolina University, Department of Economics.
  2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, October.
  3. Joseph A. Herriges & Daniel J. Phaneuf, 2002. "Inducing Patterns of Correlation and Substitution in Repeated Logit Models of Recreation Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1076-1090.
  4. Hanley, Nick & Nevin, Ceara, 1999. "Appraising renewable energy developments in remote communities: the case of the North Assynt Estate, Scotland," Energy Policy, Elsevier, vol. 27(9), pages 527-547, September.
  5. Herriges, Joseph A. & Phaneuf, Daniel J., 2002. "Inducing Patterns Correlation and Substitution in Repeated Logit Model of Recreation Demand," Staff General Research Papers 5035, Iowa State University, Department of Economics.
  6. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
  7. Ladenburg, Jacob & Dubgaard, Alex, 2007. "Willingness to pay for reduced visual disamenities from offshore wind farms in Denmark," Energy Policy, Elsevier, vol. 35(8), pages 4059-4071, August.
  8. Bergmann, Ariel & Colombo, Sergio & Hanley, Nick, 2008. "Rural versus urban preferences for renewable energy developments," Ecological Economics, Elsevier, vol. 65(3), pages 616-625, April.
  9. Meyerhoff, Jürgen & Ohl, Cornelia & Hartje, Volkmar, 2010. "Landscape externalities from onshore wind power," Energy Policy, Elsevier, vol. 38(1), pages 82-92, January.
  10. Alexandros Dimitropoulos & Andreas Kontoleon, 2008. "Assessing the Determinants of Local Acceptability of Wind Farm Investment: A Choice Experiment in the Greek Aegean Islands," Environmental Economy and Policy Research Working Papers 35.2008, University of Cambridge, Department of Land Economics, revised 2008.
  11. Koundouri, Phoebe & Kountouris, Yiannis & Remoundou, Kyriaki, 2009. "Valuing a wind farm construction: A contingent valuation study in Greece," Energy Policy, Elsevier, vol. 37(5), pages 1939-1944, May.
  12. Bateman, Ian J. & Day, Brett H. & Jones, Andrew P. & Jude, Simon, 2009. "Reducing gain-loss asymmetry: A virtual reality choice experiment valuing land use change," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 106-118, July.
  13. Alvarez-Farizo, Begona & Hanley, Nick, 2002. "Using conjoint analysis to quantify public preferences over the environmental impacts of wind farms. An example from Spain," Energy Policy, Elsevier, vol. 30(2), pages 107-116, January.
  14. Andrew D. Krueger & George R. Parsons & Jeremy Firestone, 2011. "Valuing the Visual Disamenity of Offshore Wind Power Projects at Varying Distances from the Shore: An Application on the Delaware Shoreline," Land Economics, University of Wisconsin Press, vol. 87(2), pages 268-283.
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  1. My gift to you (and it is not a new bike)
    by John Whitehead in Environmental Economics on 2010-11-30 13:23:32
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Cited by:
  1. Cherry, Todd L. & García, Jorge H. & Kallbekken, Steffen & Torvanger, Asbjørn, 2014. "The development and deployment of low-carbon energy technologies: The role of economic interests and cultural worldviews on public support," Energy Policy, Elsevier, vol. 68(C), pages 562-566.
  2. Vanja WESTERBERG & Jette BREDAHL JACOBSEN & Robert LIFRAN, 2012. "The Multi-faceted Nature of Preferences for Offshore Wind Farm Siting," Working Papers 12-22, LAMETA, Universtiy of Montpellier, revised Jul 2012.
  3. Vanja WESTERBERG & Jette Bredahl JACOBSEN & Robert LIFRAN, 2012. "The case for offshore wind farms, artificial reefs and sustainable tourism in the French Mediterranean," Working Papers 12-11, LAMETA, Universtiy of Montpellier, revised Apr 2012.
  4. Ladenburg, Jacob & Lutzeyer, Sanja, 2012. "The economics of visual disamenity reductions of offshore wind farms—Review and suggestions from an emerging field," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(9), pages 6793-6802.

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