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Weathering the Storm: Measuring Household Willingness-to-Pay for Risk-Reduction in Post-Katrina New Orleans

Author

Listed:
  • Craig E. Landry

    () (Department of Economics and Center for Natural Hazards Research, East Carolina University, Greenville, NC 27858, USA)

  • Paul Hindsley

    () (Department of Environmental Studies, Eckerd College, St. Petersburg, FL 33711, USA)

  • Okmyung Bin

    () (Department of Economics, East Carolina University, Greenville, NC 27858, USA)

  • Jamie B. Kruse

    () (Department of Economics and Center for Natural Hazards Research, East Carolina University, Greenville, NC 27858, USA)

  • John C. Whitehead

    () (Department of Economics, Appalachian State University, Boone, NC 28608, USA)

  • Ken Wilson

    () (Department of Sociology, East Carolina University, Greenville, NC 27858, USA wilsonk@ecu.edu)

Abstract

The city of New Orleans suffered extensive damage as a result of Hurricane Katrina. Rebuilding involves decisions on investment in protective measures. An exhaustive list of protective measures has been studied in planning documents, with public comment solicited in town hall meetings. In this study we employ a different approach to examine public sentiment toward the selection and investment in protective measures. Our study uses a stated preference choice experiment with a stratified sample to investigate individuals' willingness-to-pay for rebuilding New Orleans's man-made storm defenses, restoring natural storm protection, and improving evacuation options through a modernized transportation system. We target residents of the New Orleans metropolitan area as well as other U.S. citizens. Our results indicate that individuals are willing to pay for increased storm protection for New Orleans, but values differ among residents of the New Orleans metropolitan area and other U.S. citizens.

Suggested Citation

  • Craig E. Landry & Paul Hindsley & Okmyung Bin & Jamie B. Kruse & John C. Whitehead & Ken Wilson, 2011. "Weathering the Storm: Measuring Household Willingness-to-Pay for Risk-Reduction in Post-Katrina New Orleans," Southern Economic Journal, Southern Economic Association, vol. 77(4), pages 991-1013, April.
  • Handle: RePEc:sej:ancoec:v:77:4:y:2011:p:991-1013
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    File URL: http://dx.doi.org/10.4284/0038-4038-77.4.991
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    References listed on IDEAS

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    Cited by:

    1. Jones, Nikoleta & Clark, Julian R.A. & Malesios, Chrisovaladis, 2015. "Social capital and willingness-to-pay for coastal defences in south-east England," Ecological Economics, Elsevier, vol. 119(C), pages 74-82.
    2. 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.
    3. repec:eee:ecoser:v:11:y:2015:i:c:p:32-38 is not listed on IDEAS
    4. repec:eee:agiwat:v:200:y:2018:i:c:p:80-89 is not listed on IDEAS
    5. Kousky, Carolyn, 2012. "Informing Climate Adaptation: A Review of the Economic Costs of Natural Disasters, Their Determinants, and Risk Reduction Options," Discussion Papers dp-12-28, Resources For the Future.
    6. Edward B. Barbier, 2016. "The Protective Value of Estuarine and Coastal Ecosystem Services in a Wealth Accounting Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 37-58, May.
    7. Suryanto, 2017. "Vulnerability and Willingness to Pay for Coping with Flood in Klaten Regency, Central Java, Indonesia," GATR Journals jber135, Global Academy of Training and Research (GATR) Enterprise.
    8. Pallab Mozumder & William Vásquez, 2015. "An empirical analysis of hurricane evacuation expenditures," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 79(1), pages 81-92, October.
    9. Victor Champonnois & Olivier Chanel, 2016. "How useful are (Censored) Quantile Regressions for Contingent Valuation?," Working Papers 2016.12, FAERE - French Association of Environmental and Resource Economists.

    More about this item

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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