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Pricing Coastal Amenities and Flood Hazards

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  • Zhenshan Chen
  • Charles A. Towe

Abstract

Coastlines bring precious amenities to residents, but they also have significant and growing risks from storms and rising sea levels. Disentangling these amenities and risks is of ever-increasing importance to the public and policy makers. Evaluating the most tangible aspect of coastal living in New England, we present a scalable way to construct parcel-specific measures of coastal amenities. Estimates suggest that good coastal amenities, represented by unobstructed ocean views, add about 33%–69% to property prices. Coastal hazard effects are separated from the amenities: the flood zone discounts in coastal Connecticut and Massachusetts are generally low.

Suggested Citation

  • Zhenshan Chen & Charles A. Towe, 2024. "Pricing Coastal Amenities and Flood Hazards," Land Economics, University of Wisconsin Press, vol. 100(1), pages 109-126.
    • Handle: RePEc:uwp:landec:v:100:y:2024:i:1:p:109-126
    Note: DOI: https://doi.org/10.3368/le.100.1.102022-0085R
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    References listed on IDEAS

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    1. Avantika Gori & Ning Lin & Dazhi Xi & Kerry Emanuel, 2022. "Publisher Correction: Tropical cyclone climatology change greatly exacerbates US extreme rainfall–surge hazard," Nature Climate Change, Nature, vol. 12(5), pages 491-491, May.
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    4. Okmyung Bin & Thomas W. Crawford & Jamie B. Kruse & Craig E. Landry, 2008. "Viewscapes and Flood Hazard: Coastal Housing Market Response to Amenities and Risk," Land Economics, University of Wisconsin Press, vol. 84(3), pages 434-448.
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    Cited by:

    1. Ervin, Paul & Gayoso, Lyliana & Rubiano Matulevich, Eliana Carolina, 2025. "Uneven Waters : Examining Poverty and Urban and Rural Households' Exposure to Flood Risk in Paraguay," Policy Research Working Paper Series 11215, The World Bank.
    2. Chen, Zhenshan & Towe, Charles & He, Xi, 2025. "Heterogeneous flood zone effects on coastal housing prices - Risk signal and mandatory costs," Journal of Environmental Economics and Management, Elsevier, vol. 131(C).

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    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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