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Economic Policy Issues Associated With Beach Renourishment

Listed author(s):
  • Frederick W. Bell
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    Coastal beaches are a source of considerable recreational activity, but are also eroding at a rapid rate. Since beach resources are common property, there is no organized market to determine economic benefits from recreational use. Through a willingness to pay equation for beach use, this article demonstrates how proposed beach renourishment policy can be evaluated within a benefit-cost analysis framework. Benefits are estimated as the incremental willingness to pay per day for a larger beach width which is translated into annualized benefits. Annualize cost of achieving maximum benefits are calculated from a cost function. Given the existing cost of beach renourishment, it was found that all beaches in Florida that are overcrowded (i.e., had less than 112 square feet per person/day) could be renourished at a benefit-cost ratio greater than unity. In Florida, beach renourishment policy for overcrowded beaches yields more economic benefits than costs. However, this technique does not lend itself to policy analyses of uncrowded beaches that are undergoing considerable erosion. Copyright 1986 by The Policy Studies Organization.

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    Article provided by Policy Studies Organization in its journal Review of Policy Research.

    Volume (Year): 6 (1986)
    Issue (Month): 2 (November)
    Pages: 374-381

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    Handle: RePEc:bla:revpol:v:6:y:1986:i:2:p:374-381
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