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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

Contact details of provider:
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. 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.
  2. 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.
  3. 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.
  4. 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.
  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. Lew, Daniel K. & Larson, Douglas M., 2008. "Valuing a Beach Day with a Repeated Nested Logit Model of Participation, Site Choice, and Stochastic Time Value," Marine Resource Economics, Marine Resources Foundation, vol. 23(3).
  7. 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.
  8. 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.
  9. Bin, Okmyung & Landry, Craig E. & Ellis, Christopher L. & Vogelsong, Hans, 2005. "Some Consumer Surplus Estimates for North Carolina Beaches," Marine Resource Economics, Marine Resources Foundation, vol. 20(2).
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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. 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.
  2. 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.

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