The Economics of Protection against Sea-Level Rise: An Application to Coastal Properties in Connecticut
As a consequence of rising global sea levels, both the magnitude and frequency of coastal storms are expected to increase, which necessitates evaluating coastal flood adaptation measures. In this study, we conduct a benefit-cost analysis of coastal protection for 57 census blocks along the coast of Connecticut. The broad research question we address is whether benefits of coastal protection outweigh its costs. In cases where coastal armoring is desirable, our framework also allows us to determine the optimal timing of construction that maximizes expected net benefits. Our results suggest that in such cases coastal armoring can substantially alleviate the burden of total flood-related costs in the study area. The present value of cost savings due to coastal protection (relative to no protection) in the area over the next century amount to more than 26% with moderately high (physical, environmental, and amenity) costs and discount rate and range up to 41% under more conservative assumptions on the mod el parameters. Furthermore, the results we obtain imply that the optimal timing of protection may vary across different coastal regions.
|Date of creation:||Oct 2012|
|Contact details of provider:|| Postal: 1376 Storrs Road, U-21, Storrs, Connecticut 06269-4021|
Web page: http://www.zwickcenter.uconn.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vincenzina Messina & Valentina Bosetti, 2003. "Uncertainty and Option Value in Land Allocation Problems," Annals of Operations Research, Springer, vol. 124(1), pages 165-181, November.
- Francesco Bosello & Robert Nicholls & Julie Richards & Roberto Roson & Richard Tol, 2012. "Economic impacts of climate change in Europe: sea-level rise," Climatic Change, Springer, vol. 112(1), pages 63-81, May.
- 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.
- Yohe Gary & Neumann James & Ameden Holly, 1995. "Assessing the Economic Cost of Greenhouse-Induced Sea Level Rise: Methods and Application in Support of a National Survey," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 78-97, November.
- Michael, Jeffrey A., 2007. "Episodic flooding and the cost of sea-level rise," Ecological Economics, Elsevier, vol. 63(1), pages 149-159, June.
- V. Bosetti & J.M. Conrad & E. Messinat, 2004. "The Value of Flexibility: Preservation, Remediation, or Development for Ginostra?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(2), pages 219-229, October.
- Morath, Florian, 2010.
"Strategic information acquisition and the mitigation of global warming,"
Journal of Environmental Economics and Management,
Elsevier, vol. 59(2), pages 206-217, March.
- Morath, Florian, 2008.
"Strategic information acquisition and the mitigation of global warming
[Strategische Informationsakquise und der Kampf gegen den Klimawandel]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-11, Social Science Research Center Berlin (WZB).
- Okmyung Bin & Jamie Brown Kruse & Craig E. Landry, 2008. "Flood Hazards, Insurance Rates, and Amenities: Evidence From the Coastal Housing Market," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(1), pages 63-82.
- Koch, James V., 2010. "Costs of Defending Against Rising Sea Levels and Flooding in Mid-Atlantic Metropolitan Coastal Areas: The Basic Issues," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1). Full references (including those not matched with items on IDEAS)
- Morath, Florian, 2008. "Strategic information acquisition and the mitigation of global warming
When requesting a correction, please mention this item's handle: RePEc:zwi:wpaper:10. 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: ()
If references are entirely missing, you can add them using this form.