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Economic Values of Coastal Erosion Management: Joint Estimation of Use and Existence Values with recreation demand and contingent valuation data

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  • Landry, Craig E.
  • Shonkwiler, J. Scott
  • Whitehead, John C.

Abstract

Revealed and stated preference survey data from North Carolina households are utilized to estimate structural micro-econometric models of recreation demand and willingness-to-pay (WTP) for coastal erosion management among beach visitors and non-visitors. We test for and reject weak complementarity, implying existence values associated with management of North Carolina’s beaches. We find stronger preferences for shoreline retreat (median WTP = $22.20 per household, per year) as a management strategy relative to beach nourishment (WTP = $7.91), and we find substantially weaker preferences for shoreline armoring (WTP = $0.09). Shoreline retreat exhibits much larger estimates of existence values, whereas existence values for shoreline armoring are negative. Our data permit estimates of marginal value of incremental beach width accruing to beach users and non-users (which range from $0.23 and $0.48 per meter).

Suggested Citation

  • Landry, Craig E. & Shonkwiler, J. Scott & Whitehead, John C., 2020. "Economic Values of Coastal Erosion Management: Joint Estimation of Use and Existence Values with recreation demand and contingent valuation data," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:jeeman:v:103:y:2020:i:c:s0095069620300875
    DOI: 10.1016/j.jeem.2020.102364
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    Cited by:

    1. Alexandra Toimil & Iñigo J. Losada & Moisés Álvarez-Cuesta & Gonéri Cozannet, 2023. "Demonstrating the value of beaches for adaptation to future coastal flood risk," Nature Communications, Nature, vol. 14(1), pages 1-11, December.
    2. Nguyen, Manh-Hung & Nguyen, Thi Lan Anh & Nguyen, Tuan & Reynaud, Arnaud & Simioni, Michel & Hoang, Viet-Ngu, 2021. "Economic analysis of choices among differing measures to manage coastal erosion in Hoi An (a UNESCO World Heritage Site)," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 529-543.
    3. Adelina Gschwandtner & Jose Eduardo Ribeiro & Cesar Revoredo-Giha & Michael Burton, 2021. "Combining Stated and Revealed Preferences for valuing Organic Chicken Meat," Studies in Economics 2113, School of Economics, University of Kent.
    4. Craig E. Landry & John Bergstrom & John Salazar & Dylan Turner, 2021. "How Has the COVID‐19 Pandemic Affected Outdoor Recreation in the U.S.? A Revealed Preference Approach," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 443-457, March.
    5. Kolstoe, Sonja & Naald, Brian Vander & Cohan, Alison, 2022. "A tale of two samples: Understanding WTP differences in the age of social media," Ecosystem Services, Elsevier, vol. 55(C).
    6. Paul Hindsley & Craig E. Landry & Kurt Schnier & John C. Whitehead & Mohammadreza Zarei, 2021. "Joint Estimation of Revealed Preference Site Selection and Stated Preference Choice Experiment Recreation Data Considering Attribute NonAttendance," Working Papers 21-10, Department of Economics, Appalachian State University.

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    More about this item

    Keywords

    Recreation; Demand; Beach; Erosion; Management; Economic; Value;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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