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Spatial Heterogeneity in the Economic Value of Beach Proximity

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  • Wang, Chang

Abstract

Coastal property markets are influenced by unique environmental attributes, yet traditional models often assume their economic value is spatially constant. This study investigates the spatial heterogeneity of beach proximity value in Glynn County, Georgia, using a geographically weighted spatial lag (GWSL) hedonic model. By analyzing 42,152 residential transactions from 1984 to 2021, we find that the effect of beach proximity on house prices is highly non-stationary, with significant capitalization concentrated in barrier islands. Our results reveal a powerful spatial multiplier, which indicates that property wealth is highly socialized through localized price spillovers. Applying individual local parameters, we estimate a mean Total Marginal Willingness to Pay (MWTP) of $1.06 million for a 100-meter reduction in network distance to the shoreline.

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  • Wang, Chang, 2026. "Spatial Heterogeneity in the Economic Value of Beach Proximity," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404453, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404453
    DOI: 10.22004/ag.econ.404453
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    References listed on IDEAS

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    1. Craig E. Landry & Paul Hindsley, 2011. "Valuing Beach Quality with Hedonic Property Models," Land Economics, University of Wisconsin Press, vol. 87(1), pages 92-108.
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    3. George R. Parsons & Yangru Wu, 1991. "The Opportunity Cost of Coastal Land-Use Controls: An Empirical Analysis," Land Economics, University of Wisconsin Press, vol. 67(3), pages 308-316.
    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.
    5. Brown, Gardner M, Jr & Pollakowski, Henry O, 1977. "Economic Valuation of Shoreline," The Review of Economics and Statistics, MIT Press, vol. 59(3), pages 272-278, August.
    6. Gopalakrishnan, Sathya & Smith, Martin D. & Slott, Jordan M. & Murray, A. Brad, 2011. "The value of disappearing beaches: A hedonic pricing model with endogenous beach width," Journal of Environmental Economics and Management, Elsevier, vol. 61(3), pages 297-310, May.
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