Economic Values of Coastal Erosion Management: Joint Estimation of Use and Passive Use Values With Recreation Demand and Contingent Valuation Data

35 Pages Posted: 7 Aug 2018

See all articles by Craig E. Landry

Craig E. Landry

UGA Ag & Applied Economics

J. Scott Shonkwiler

University of Nevada, Reno

John C. Whitehead

Appalachian State University - Department of Economics

Date Written: July 17, 2018

Abstract

Revealed and stated preference survey data from North Carolina households are utilized to estimate a joint structural microeconometric model of recreation demand and willingness-to-pay (WTP) for coastal erosion management among beach visitors and non-visitors. We test for and reject weak complementarity, implying existence of non-use values associated with management of North Carolina’s coastal resources. We find stronger preferences for shoreline retreat (median WTP = $22.20 per household, per year) as a management strategy relative to beach nourishment (WTP = $7.45) and substantially weaker preferences for shoreline armoring (WTP = $0.09). Shoreline retreat exhibits much larger estimates of non-use values, whereas non-use values for shoreline armoring are negative. Minimizing negative environmental impacts of erosion management increases WTP over 200%. Our data permit estimates of marginal value of incremental beach width accruing to beach users and non-users (which ranges from $0.23 and $0.47 per meter).

Keywords: recreation; demand; beach; erosion; management; economic; value

JEL Classification: D78; H43; Q24; Q26; Q51

Suggested Citation

Landry, Craig and Shonkwiler, J. Scott and Whitehead, John C., Economic Values of Coastal Erosion Management: Joint Estimation of Use and Passive Use Values With Recreation Demand and Contingent Valuation Data (July 17, 2018). Available at SSRN: https://ssrn.com/abstract=3215484 or http://dx.doi.org/10.2139/ssrn.3215484

Craig Landry (Contact Author)

UGA Ag & Applied Economics ( email )

Athens, GA 30602-7509
United States

J. Scott Shonkwiler

University of Nevada, Reno ( email )

Applied Economics and Statistics
Reno, NV 89557
United States
775-784-1341 (Phone)

John C. Whitehead

Appalachian State University - Department of Economics ( email )

Boone, NC 28608
United States

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