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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
  • Paul Hindsley
  • Okmyung Bin
  • Jamie B. Kruse
  • John C. Whitehead
  • Kenneth R. Wilson

Abstract

The city of New Orleans suffered extensive damage as a result of Hurricane Katrina. Katrina overwhelmed the natural and built environment, inundating the city. As rebuilding proceeds, decisions on investment in protective measures will include the choice of lines of defense and the storm severity that design criteria should meet. An exhaustive list of protective measures has been studied in planning documents such as the Louisiana Coastal Protection and Restoration Technical Report (2009), with public comment solicited in town hall meetings. In this study we employ a different approach to examine public sentiment towards the selection and investment in protective measures. Our study utilizes a stated choice experiment with a stratified sample to investigate individuals’ willingness-to-pay for rebuilding New Orleans’ 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 US citizens. Our results indicate that individuals are willing-to-pay for increased storm protection for New Orleans, but the allocation of these resources differs among residents of the New Orleans metro area and other US citizens. Key Words: storm surge mitigation, conjoint analysis, willingness to pay, Hurricane Katrina, flood control, stated choice, rebuilding New Orleans, recovery

Suggested Citation

  • Craig E. Landry & Paul Hindsley & Okmyung Bin & Jamie B. Kruse & John C. Whitehead & Kenneth R. Wilson, 2009. "Weathering the Storm: Measuring Household Willingness-to-Pay for Risk-Reduction in Post-Katrina New Orleans," Working Papers 09-18, Department of Economics, Appalachian State University.
  • Handle: RePEc:apl:wpaper:09-18
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Are the NOLA levees worth the cost?
      by John Whitehead in Environmental Economics on 2010-08-25 02:08:34
    2. Like a freshly cut lawn
      by John Whitehead in Environmental Economics on 2009-08-21 17:43:14

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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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