IDEAS home Printed from https://ideas.repec.org/a/eee/jeeman/v98y2019ics0095069618304248.html
   My bibliography  Save this article

Coastal dynamics and adaptation to uncertain sea level rise: Optimal portfolios for salt marsh migration

Author

Listed:
  • Vinent, Orencio Duran
  • Johnston, Robert J.
  • Kirwan, Matthew L.
  • Leroux, Anke D.
  • Martin, Vance L.

Abstract

The sustainability of dynamic natural systems often depends on their capacity to adapt to uncertain climate-related changes, where different management options may be combined to facilitate this adaptation. Salt marshes exemplify such a system. Marsh sustainability under rapid sea level rise requires the preservation of transgression zones - undeveloped uplands onto which marshes migrate. Whether these uplands eventually become marsh depends on uncertain sea level rise and natural dynamics that determine migration onto different land types. Under conditions such as these, systematically diversified management actions generally outperform ad hoc or non-diversified alternatives. This paper develops the first adaptation portfolio model designed to optimize the benefits of a migrating coastal system. Results are illustrated using a case study of marsh conservation in Virginia, USA. Results suggest that models of this type can enhance adaptation benefits beyond those available through current approaches.

Suggested Citation

  • Vinent, Orencio Duran & Johnston, Robert J. & Kirwan, Matthew L. & Leroux, Anke D. & Martin, Vance L., 2019. "Coastal dynamics and adaptation to uncertain sea level rise: Optimal portfolios for salt marsh migration," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
  • Handle: RePEc:eee:jeeman:v:98:y:2019:i:c:s0095069618304248
    DOI: 10.1016/j.jeem.2019.102262
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0095069618304248
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Payal Shah & Amy W. Ando, 2015. "Downside versus Symmetric Measures of Uncertainty in Natural Resource Portfolio Design to Manage Climate Change Uncertainty," Land Economics, University of Wisconsin Press, vol. 91(4), pages 664-687.
    2. Jacob LaRiviere & David Kling & James N Sanchirico & Charles Sims & Michael Springborn, 2018. "The Treatment of Uncertainty and Learning in the Economics of Natural Resource and Environmental Management," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 92-112.
    3. Duke, Joshua M. & Dundas, Steven J. & Johnston, Robert J. & Messer, Kent D., 2014. "Prioritizing payment for environmental services: Using nonmarket benefits and costs for optimal selection," Ecological Economics, Elsevier, vol. 105(C), pages 319-329.
    4. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    5. Farinelli, Simone & Ferreira, Manuel & Rossello, Damiano & Thoeny, Markus & Tibiletti, Luisa, 2008. "Beyond Sharpe ratio: Optimal asset allocation using different performance ratios," Journal of Banking & Finance, Elsevier, vol. 32(10), pages 2057-2063, October.
    6. Yemshanov, Denys & Koch, Frank H. & Lu, Bo & Lyons, D. Barry & Prestemon, Jeffrey P. & Scarr, Taylor & Koehler, Klaus, 2014. "There is no silver bullet: The value of diversification in planning invasive species surveillance," Ecological Economics, Elsevier, vol. 104(C), pages 61-72.
    7. Merton, Robert C., 1971. "Optimum consumption and portfolio rules in a continuous-time model," Journal of Economic Theory, Elsevier, vol. 3(4), pages 373-413, December.
    8. Gourguet, S. & Thébaud, O. & Dichmont, C. & Jennings, S. & Little, L.R. & Pascoe, S. & Deng, R.A. & Doyen, L., 2014. "Risk versus economic performance in a mixed fishery," Ecological Economics, Elsevier, vol. 99(C), pages 110-120.
    9. Sethi, Suresh Andrew & Reimer, Matthew & Knapp, Gunnar, 2014. "Alaskan fishing community revenues and the stabilizing role of fishing portfolios," Marine Policy, Elsevier, vol. 48(C), pages 134-141.
    10. Subhrendu K. Pattanayak & Sven Wunder & Paul J. Ferraro, 2010. "Show Me the Money: Do Payments Supply Environmental Services in Developing Countries?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 254-274, Summer.
    11. Sanchirico, James N. & Smith, Martin D. & Lipton, Douglas W., 2008. "An empirical approach to ecosystem-based fishery management," Ecological Economics, Elsevier, vol. 64(3), pages 586-596, January.
    12. Qian Zhou & James H. Lambert & Christopher W. Karvetski & Jeffrey M. Keisler & Igor Linkov, 2012. "Flood Protection Diversification to Reduce Probabilities of Extreme Losses," Risk Analysis, John Wiley & Sons, vol. 32(11), pages 1873-1887, November.
    13. Daniel R. Petrolia & Matthew G. Interis & Joonghyun Hwang, 2014. "America's Wetland? A National Survey of Willingness to Pay for Restoration of Louisiana's Coastal Wetlands," Marine Resource Economics, University of Chicago Press, vol. 29(1), pages 17-37.
    14. Milon, J. Walter & Scrogin, David, 2006. "Latent preferences and valuation of wetland ecosystem restoration," Ecological Economics, Elsevier, vol. 56(2), pages 162-175, February.
    15. Merton, Robert C, 1969. "Lifetime Portfolio Selection under Uncertainty: The Continuous-Time Case," The Review of Economics and Statistics, MIT Press, vol. 51(3), pages 247-257, August.
    16. van 't Veld, Klaas & Plantinga, Andrew, 2005. "Carbon sequestration or abatement? The effect of rising carbon prices on the optimal portfolio of greenhouse-gas mitigation strategies," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 59-81, July.
    17. Leroux, Anke D. & Martin, Vance L. & Zheng, Hao, 2018. "Addressing water shortages by force of habit," Resource and Energy Economics, Elsevier, vol. 53(C), pages 42-61.
    18. S. V. Stoyanov & S. T. Rachev & F. J. Fabozzi, 2007. "Optimal Financial Portfolios," Applied Mathematical Finance, Taylor & Francis Journals, vol. 14(5), pages 401-436.
    19. Leroux, Anke D. & Whitten, Stuart M., 2014. "Optimal investment in ecological rehabilitation under climate change," Ecological Economics, Elsevier, vol. 107(C), pages 133-144.
    20. Mallory, Mindy L. & Ando, Amy W., 2014. "Implementing efficient conservation portfolio design," Resource and Energy Economics, Elsevier, vol. 38(C), pages 1-18.
    21. Jardine, Sunny L. & Sanchirico, James N., 2015. "Fishermen, markets, and population diversity," Journal of Environmental Economics and Management, Elsevier, vol. 74(C), pages 37-54.
    22. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    23. Stéphane Hallegatte, 2012. "Investment decision-making under deep uncertainty - application to climate change," Post-Print hal-00802049, HAL.
    24. Kenneth J. Arrow & Anthony C. Fisher, 1974. "Environmental Preservation, Uncertainty, and Irreversibility," The Quarterly Journal of Economics, Oxford University Press, vol. 88(2), pages 312-319.
    25. Hallegatte, Stephane & Shah, Ankur & Lempert, Robert & Brown, Casey & Gill, Stuart, 2012. "Investment decision making under deep uncertainty -- application to climate change," Policy Research Working Paper Series 6193, The World Bank.
    26. Sathya Gopalakrishnan & Craig E Landry & Martin D Smith, 2018. "Climate Change Adaptation in Coastal Environments: Modeling Challenges for Resource and Environmental Economists," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 48-68.
    27. Anke D. Leroux & Vance L. Martin, 2016. "Hedging Supply Risks: An Optimal Water Portfolio," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(1), pages 276-296.
    28. Robert J. Johnston & Gisele Magnusson & Marisa J. Mazzotta & James J. Opaluch, 2002. "Combining Economic and Ecological Indicators to Prioritize Salt Marsh Restoration Actions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1362-1370.
    29. Newbold, Stephen C. & Marten, Alex L., 2014. "The value of information for integrated assessment models of climate change," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 111-123.
    30. Matthew G. Interis & Daniel R. Petrolia, 2016. "Location, Location, Habitat: How the Value of Ecosystem Services Varies across Location and by Habitat," Land Economics, University of Wisconsin Press, vol. 92(2), pages 292-307.
    31. Edward B Barbier & Ioannis Y Georgiou & Brian Enchelmeyer & Denise J Reed, 2013. "The Value of Wetlands in Protecting Southeast Louisiana from Hurricane Storm Surges," PLOS ONE, Public Library of Science, vol. 8(3), pages 1-6, March.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeeman:v:98:y:2019:i:c:s0095069618304248. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/locate/inca/622870 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.