Weathering the Storm: Measuring Household Willingness-to-Pay for Risk-Reduction in Post-Katrina New Orleans

44 Pages Posted: 29 Apr 2011

See all articles by Craig E. Landry

Craig E. Landry

UGA Ag & Applied Economics

Paul Hindsley

Eckerd College

Okmyung Bin

East Carolina University - Department of Economics

Jamie B. Kruse

East Carolina University - Department of Economics

John C. Whitehead

Appalachian State University - Department of Economics

Kenneth Wilson

affiliation not provided to SSRN

Date Written: April 27, 2011

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.

Keywords: storm surge mitigation, conjoint analysis, willingness to pay, Hurricane Katrina, flood control, stated choice, rebuilding New Orleans, recovery

JEL Classification: H43, Q51, R53

Suggested Citation

Landry, Craig and Hindsley, Paul and Bin, Okmyung and Kruse, Jamie B. and Whitehead, John C. and Wilson, Kenneth, Weathering the Storm: Measuring Household Willingness-to-Pay for Risk-Reduction in Post-Katrina New Orleans (April 27, 2011). Available at SSRN: https://ssrn.com/abstract=1824426 or http://dx.doi.org/10.2139/ssrn.1824426

Craig Landry (Contact Author)

UGA Ag & Applied Economics ( email )

Athens, GA 30602-7509
United States

Paul Hindsley

Eckerd College ( email )

United States

Okmyung Bin

East Carolina University - Department of Economics ( email )

Brewster Building
Greenville, NC 27858
United States

Jamie B. Kruse

East Carolina University - Department of Economics ( email )

Brewster Building
Greenville, NC 27858
United States
(252) 328-4165 (Phone)
(252) 328-6743 (Fax)

HOME PAGE: http://www.ecu.edu/econ/faculty/krusej/

John C. Whitehead

Appalachian State University - Department of Economics ( email )

Boone, NC 28608
United States

Kenneth Wilson

affiliation not provided to SSRN ( email )

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