1932
0
  1. Home
  2. A-Z Publications
  3. Annual Review of Resource Economics
  4. Volume 8, 2016
  5. Article

Annual Review of Resource Economics

Volume 8, 2016

Economics of Coastal Erosion and Adaptation to Sea Level Rise

Abstract

This article provides a review and synthesis of geoeconomic models that are used to analyze coastal erosion management and shoreline change. We outline a generic framework for analyzing risk-mitigating and/or recreation-enhancing policy interventions within a dynamic framework, and we review literature that informs the nature and extent of net benefit flows associated with coastal management. Using stated preference analysis, we present new estimates on household preferences for shoreline erosion management, including costs associated with ecological impacts of management. Lastly, we offer some guidance on directions for future research.

Keyword(s): adaptation, coastal erosion, dynamic optimization, geoeconomics, natural resource economics
Loading

Article metrics loading...

/content/journals/10.1146/annurev-resource-100815-095416
2016-10-05
2024-04-19
Loading full text...

Full text loading...

/deliver/fulltext/resource/8/1/annurev-resource-100815-095416.html?itemId=/content/journals/10.1146/annurev-resource-100815-095416&mimeType=html&fmt=ahah

Literature Cited

  1. Abelson PW, Markandya A. 1985. The interpretation of capitalized hedonic prices in a dynamic environment. J. Environ. Econ. Manag. 12:3195–206 [Google Scholar]
  2. Ashton A, Murray AB, Arnoult O. 2001. Formation of coastline features by large-scale instabilities induced by high-angle waves. Nature 414:296–300 [Google Scholar]
  3. Atreya A, Ferreira S. 2015. Seeing is believing? Evidence from property prices in inundated areas. Risk Anal 35:5828–48 [Google Scholar]
  4. Atreya A, Ferreira S, Kriesel W. 2013. Forgetting the flood? An analysis of the flood risk discount over time. Land Econ 89:4577–96 [Google Scholar]
  5. Bell FW. 1986. Economic policy issues associated with beach renourishment. Rev. Policy Res. 6:2374–81 [Google Scholar]
  6. Bennear LS, Stavins RN. 2007. Second-best theory and the use of multiple policy instruments. Environ. Res. Econ. 37:1111–29 [Google Scholar]
  7. Bin O, Crawford TW, Kruse JB, Landry CE. 2008a. Viewscapes and flood hazard: coastal housing market response to amenities and risk. Land Econ 84:3434–48 [Google Scholar]
  8. Bin O, Kruse JB, Landry CE. 2008b. Flood hazards, insurance rates, and amenities: evidence from the coastal housing market. J. Risk Insur. 75:163–82 [Google Scholar]
  9. Bin O, Landry CE. 2013. Changes in implicit flood risk premiums: empirical evidence from the housing market. J. Environ. Econ. Manag. 65:3361–76 [Google Scholar]
  10. Bin O, Polasky S. 2004. Effects of flood hazards on property values: evidence before and after Hurricane Floyd. Land Econ 80:4490–500 [Google Scholar]
  11. Brock W, Xepapadeas A. 2008. Diffusion-induced instability and pattern formation in infinite horizon recursive optimal control. J. Econ. Dyn. Control 32:92745–87 [Google Scholar]
  12. Brock W, Xepapadeas A. 2010. Pattern formation, spatial externalities and regulation in coupled economic–ecological systems. J. Environ. Econ. Manag. 59:2149–64 [Google Scholar]
  13. Cameron TA, James MD. 1987. Efficient estimation methods for “closed ended” contingent valuation surveys. Rev. Econ. Stat. 62:9269–76 [Google Scholar]
  14. Carbone JC, Hallstrom DG, Smith VK. 2006. Can natural experiments measure behavioral responses to environmental risks. ? Environ. Res. Econ. 33:3273–97 [Google Scholar]
  15. Clark CW, Munro GR. 1975. The economics of fishing and modern capital theory: a simplified approach. J. Environ. Econ. Manag. 2:292–106 [Google Scholar]
  16. Coburn T. 2009. Washed out to sea: how Congress prioritizes beach pork over national needs Congr. Overs. Investig. Rep., US Senate, 111th Congr., Washington, DC
  17. Dean RG. 2002. Beach Nourishment: Theory and Practice River Edge, NJ: World Sci.
  18. Ells K, Murray AB. 2012. Long-term, non-local coastline responses to local shoreline stabilization. Geophys. Res. Lett. 39:19L19401 [Google Scholar]
  19. Gopalakrishnan S, Landry CL, Smith MD. 2016a. Coastal climate adaptation: a grand challenge for environmental and resource economics. Submitted
  20. Gopalakrishnan S, McNamara D, Smith MD, Murray AB. 2016b. Decentralized management hinders coastal climate adaptation: the spatial-dynamics of beach nourishment. Environ. Resour. Econ. In press. doi: 10.1007/s10640-016-0004-8
  21. Gopalakrishnan S, Smith MD, Slott JM, Murray AB. 2011. The value of disappearing beaches: a hedonic pricing model with endogenous beach width. J. Environ. Econ. Manag. 61:3297–310 [Google Scholar]
  22. Gordon HS. 1954. The economic theory of a common-property resource: the fishery. J. Polit. Econ. 62:124–42 [Google Scholar]
  23. Green C, Penning-Rowsell E. 1999. Inherent conflicts at the coast. J. Coastal Conserv. 5:2153–62 [Google Scholar]
  24. Hallstrom DG, Smith VK. 2005. Market responses to hurricanes. J. Environ. Econ. Manag. 50:3541–61 [Google Scholar]
  25. Hartman R. 1976. The harvesting decision when a standing forest has value. Econ. Inq. 14:152–58 [Google Scholar]
  26. Homans FR, Wilen JE. 1997. A model of regulated open access resource use. J. Environ. Econ. Manag. 32:11–21 [Google Scholar]
  27. Huang J, Parsons GR, Poor PJ, Zhao MQ. 2011. Combined conjoint-travel cost demand model for measuring the impact of erosion and erosion control programs on beach recreation. Preference Data for Environmental Valuation: Combining Revealed and Stated Approaches T Haab, J Huang, J Whitehead 115–38 New York: Routledge [Google Scholar]
  28. Huang JC, Poor PJ, Zhao MQ. 2007. Economic valuation of beach erosion control. Mar. Resour. Econ. 22:3221–38 [Google Scholar]
  29. Jin D, Ashton AD, Hoagland P. 2013. Optimal responses to shoreline changes: an integrated economic and geological model with application to curved coasts. Nat. Resour. Model. 26:4572–604 [Google Scholar]
  30. Klaiber HA, Phaneuf DJ. 2010. Valuing open space in a residential sorting model of the Twin Cities. J. Environ. Econ. Manag. 60:257–77 [Google Scholar]
  31. Kraus NC. 1988. The effects of seawalls on the beach. J. Coastal Res. 4:Spec. Issue1–28 [Google Scholar]
  32. Kriesel W, Randall A, Lichtkoppler F. 1993. Estimating the benefits of shore erosion protection in Ohio's Lake Erie housing market. Water Resour. Res. 29:4795–801 [Google Scholar]
  33. Kuminoff NV, Smith VK, Timmins C. 2013. The new economics of equilibrium sorting and policy evaluation using housing markets. J. Econ. Lit. 51:41007–62 [Google Scholar]
  34. Landry CE. 2011. Coastal erosion as a natural resource management problem: an economic perspective. Coastal Manag 39:3259–81 [Google Scholar]
  35. Landry CE, Allen T. 2016. Hedonic property prices and coastal beach width Work. Pap., Univ. Ga. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2474276
  36. Landry CE, Hindsley P. 2011. Valuing beach quality with hedonic property models. Land Econ 87:192–108 [Google Scholar]
  37. Landry CE, Keeler AG, Kriesel W. 2003. An economic evaluation of beach erosion management alternatives. Mar. Resour. Econ. 18:2105–27 [Google Scholar]
  38. Landry CE, List JA. 2007. Using ex ante approaches to obtain credible signals for value in contingent markets: evidence from the field. Am. J. Agric. Econ. 89:2420–29 [Google Scholar]
  39. Landry CE, Liu H. 2009. A semi-parametric estimator for revealed and stated preference data—an application to recreational beach visitation. J. Environ. Econ. Manag. 57:2205–18 [Google Scholar]
  40. Landry CE, Liu H. 2011. Econometric models for joint estimation of revealed and stated preference site-frequency recreation demand models. Preference Data for Environmental Valuation: Combining Revealed and Stated Approaches T Haab, J Huang, J Whitehead 87–100 New York: Routledge [Google Scholar]
  41. Landry CE, Whitehead JC. 2015. Economic values of coastal erosion management: joint estimation of use and passive use values with recreation and contingent valuation data Presented at Annu. Meet. Agric. Appl. Econ. Assoc.,West. Agric. Econ. Assoc., San Francisco
  42. Lazarus ED, McNamara DE, Smith MD, Gopalakrishnan S, Murray AB. 2011. Emergent behavior in a coupled economic and coastline model for beach nourishment. Nonlinear Process. Geophys. 18:6989–99 [Google Scholar]
  43. Leggett CG, Bockstael NE. 2000. Evidence of the effects of water quality on residential land prices. J. Environ. Econ. Manag. 39:2121–44 [Google Scholar]
  44. Lew DK, Larson DM. 2005. Valuing recreation and amenities at San Diego County beaches. Coastal Manag 33:171–86 [Google Scholar]
  45. Lew DK, Larson DM. 2008. Valuing a beach day with a repeated nested logit model of participation, site choice, and stochastic time value. Mar. Resour. Econ. 23:3233–52 [Google Scholar]
  46. Lindsay BE, Halstead JM, Tupper HC, Vaske JJ. 1992. Factors influencing the willingness to pay for coastal beach protection. Coastal Manag 20:3291–302 [Google Scholar]
  47. Logar I, van den Bergh JC. 2014. Economic valuation of preventing beach erosion: comparing existing and non-existing beach markets with stated and revealed preferences. J. Environ. Econ. Policy 3:146–66 [Google Scholar]
  48. McConnell KE. 1977. Congestion and willingness to pay: a study of beach use. Land Econ 53:2185–95 [Google Scholar]
  49. McNamara DE, Gopalakrishnan S, Smith MD, Murray AB. 2015. Climate adaptation and policy-induced inflation of coastal property value. PLOS ONE 10:3e0121278 [Google Scholar]
  50. McNamara DE, Keeler A. 2013. A coupled physical and economic model of the response of coastal real estate to climate risk. Nat. Clim. Change 3:6559–62 [Google Scholar]
  51. McNamara DE, Murray AB, Smith MD. 2011. Coastal sustainability depends on how economic and coastline responses to climate change affect each other. Geophys. Res. Lett. 38:7L047207 [Google Scholar]
  52. Murray AB, Gopalakrishnan S, McNamara DE, Smith MD. 2013. Progress in coupling models of human and coastal landscape change. Comput. Geosci. 53:30–38 [Google Scholar]
  53. Nordhaus WD. 2006. The economics of hurricanes in the United States NBER Work. Pap. 12813
  54. Parsons GR, Chen Z, Hidrue MK, Standing N, Lilley J. 2013. Valuing beach width for recreational use: combining revealed and stated preference data. Mar. Resour. Econ. 28:3221–41 [Google Scholar]
  55. Parsons GR, Massey DM, Tomasi T. 1999. Familiar and favorite sites in a random utility model of beach recreation. Mar. Resour. Econ. 14:4299–315 [Google Scholar]
  56. Parsons GR, Powell M. 2001. Measuring the cost of beach retreat. Coastal Manag 29:291–103 [Google Scholar]
  57. Pendleton L, Mohn C, Vaughn RK, King P, Zoulas JG. 2012. Size matters: the economic value of beach erosion and nourishment in Southern California. Contemp. Econ. Policy 30:2223–37 [Google Scholar]
  58. Pilkey OH, Wright HL III. 1988. Seawalls versus beaches. J. Coastal Res. 4:41–64 [Google Scholar]
  59. Pompe JJ, Rinehart JR. 1995. Beach quality and the enhancement of recreational property values. J. Leis. Res. 27:2143–54 [Google Scholar]
  60. Pompe JJ, Rinehart JR. 1999. Establishing fees for beach protection: paying for a public good. Coastal Manag 27:57–67 [Google Scholar]
  61. Rambaldi AN, Fletcher CS, Collins K, McAllister RR. 2012. Housing shadow prices in an inundation-prone suburb. Urban Stud 50:91889–1905 [Google Scholar]
  62. Rosen S. 1974. Hedonic prices and implicit markets: product differentiation in pure competition. J. Polit. Econ. 82:134–55 [Google Scholar]
  63. Rulleau B, Rey-Valette H. 2013. Valuing the benefits of beach protection measures in the face of climate change: a French case-study. J. Environ. Econ. Policy 2:2133–47 [Google Scholar]
  64. Samarasinghe O, Sharp B. 2010. Flood prone risk and amenity values: a spatial hedonic analysis. Aust. J. Agric. Resour. Econ. 54:4457–75 [Google Scholar]
  65. Samuelson PA. 1976. Economics of forestry in an evolving society. Econ. Inq. 14:4466–92 [Google Scholar]
  66. Scott A. 1955. Natural Resources: The Economics of Conservation Toronto: Univ. Toronto Press
  67. Shivlani MP, Letson D, Theis M. 2003. Visitor preferences for public beach amenities and beach restoration in South Florida. Coastal Manag 31:4367–85 [Google Scholar]
  68. Silberman J, Klock M. 1988. The recreation benefits of beach renourishment. Ocean Shorel. Manag. 11:173–90 [Google Scholar]
  69. Slott JM, Murray AB, Ashton AD. 2010. Large-scale responses of complex-shaped coastlines to local shoreline stabilization and climate change. J. Geophys. Res. 115:F3F03033 [Google Scholar]
  70. Smith MD, Murray AB, Gopalakrishnan S, Keeler AG, Landry CE. et al. 2015. Geoengineering coastlines? From accidental to intentional. Coastal Zones: Solutions for the 21st Century, J Baztan, O Chouinard, B Jorgensen, P Tett, J-P Vanderlinden, L Vasseur 99–122 Amsterdam: Elsevier [Google Scholar]
  71. Smith MD, Sanchirico JN, Wilen JE. 2009a. The economics of spatial-dynamic processes: applications to renewable resources. J. Environ. Econ. Manag. 57:1104–21 [Google Scholar]
  72. Smith MD, Slott JM, McNamara D, Murray AB. 2009b. Beach nourishment as a dynamic capital accumulation problem. J. Environ. Econ. Manag. 58:158–71 [Google Scholar]
  73. Smith VL. 1969. On models of commercial fishing. J. Polit. Econ. 77:2181–98 [Google Scholar]
  74. USACE (US Army Corps Eng) 2000. Planning Guidance Notebook. Eng. Reg. 1105-2-100, Dep. Army, Washington, DC [Google Scholar]
  75. Von Haefen RH, Massey DM, Adamowicz WL. 2005. Serial nonparticipation in repeated discrete choice models. Am. J. Agric. Econ. 87:41061–76 [Google Scholar]
  76. Whitehead JC, Dumas CF, Herstine J, Hill J, Buerger B. 2008. Valuing beach access and width with revealed and stated preference data. Mar. Resour. Econ. 23:2119–35 [Google Scholar]
  77. Whitehead JC, Phaneuf DJ, Dumas CF, Herstine J, Hill J, Buerger B. 2010. Convergent validity of revealed and stated recreation behavior with quality change: a comparison of multiple and single site demands. Environ. Res. Econ. 45:191–112 [Google Scholar]
  78. Whitehead JC, Poulter B, Dumas CF, Bin O. 2009. Measuring the economic effects of sea level rise on shore fishing. Mitig. Adapt. Strateg. Glob. Change 14:8777–92 [Google Scholar]
  79. Williams ZC, McNamara DE, Smith MD, Murray AB, Gopalakrishnan S. 2013. Coupled economic-coastline modeling with suckers and free riders. J. Geophys. Res. 118:2887–99 [Google Scholar]
  80. Yoe C. 1993. National economic development procedures manual: national economic development costs Rep. DACWC72-90-D-0002, US Army Corps Eng., Inst. Water Res., Fort Belvoir, VA
  81. Yohe G, Neumann J, Ameden H. 1995. Assessing the economic cost of greenhouse-induced sea level rise: methods and application in support of a national survey. J. Environ. Econ. Manag. 29:3S78–S97 [Google Scholar]
/content/journals/10.1146/annurev-resource-100815-095416
Loading
Economics of Coastal Erosion and Adaptation to Sea Level Rise
Annual Review of Resource Economics 8, 119 (2016); https://doi.org/10.1146/annurev-resource-100815-095416
/content/journals/10.1146/annurev-resource-100815-095416
/content/journals/10.1146/annurev-resource-100815-095416
Loading

Data & Media loading...

  • Article Type: Review Article

Most Cited Most Cited RSS feed

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error