Offshore Wind Turbines and Coastal Recreation Demand

32 Pages Posted: 28 Apr 2011

See all articles by Craig E. Landry

Craig E. Landry

UGA Ag & Applied Economics

Tom Allen

East Carolina University

Todd L. Cherry

Appalachian State University - Department of Economics

John C. Whitehead

Appalachian State University - Department of Economics

Date Written: April 27, 2011

Abstract

We examine the impact of coastal wind turbines on coastal tourism and recreation for residents of the northern CAMA counties in North Carolina. A combination of telephone and web survey data are used to assess the impact of coastal wind farms on trip behavior and site choice. Most of the respondents to our telephone survey claim to support offshore wind energy development, and independent survey data suggest that the observed levels of support may be indicative of the broader population in this region. Overall, we find very little impact of coastal wind turbines on aggregate recreational visitation; loss in consumer surplus associated with wide spread wind development in the coastal zone is insignificant at $17 (or about 1.5%). Results suggest that NC coastal residents are averse to wind farms in the near-shore zone; average compensating variation for wind farms one mile from the shore is estimated at $55 per household. On average, we find no evidence of aversion to wind farms 4 miles out in the ocean, or for wind farms located in coastal estuaries. For all wind farm scenarios, we find evidence of preference heterogeneity – some respondents find this appealing while others find it aversive.

Keywords: wind, turbines, coastal, recreation, demand

JEL Classification: D61, Q26, Q42

Suggested Citation

Landry, Craig and Allen, Tom and Cherry, Todd L. and Whitehead, John C., Offshore Wind Turbines and Coastal Recreation Demand (April 27, 2011). Available at SSRN: https://ssrn.com/abstract=1824397 or http://dx.doi.org/10.2139/ssrn.1824397

Craig Landry (Contact Author)

UGA Ag & Applied Economics ( email )

Athens, GA 30602-7509
United States

Tom Allen

East Carolina University ( email )

Greenville, NC 27858
United States

Todd L. Cherry

Appalachian State University - Department of Economics ( email )

Raley Hall
Boone, NC 28608
United States

John C. Whitehead

Appalachian State University - Department of Economics ( email )

Boone, NC 28608
United States

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