Estimating Option Values And Spillover Damages For Coastal Protection: Evidence From Oregon’S Planning Goal 18

Dundas, Steven J.; Lewis, David J.

doi:10.1086/708092

i

Estimating Option Values And Spillover Damages For Coastal Protection: Evidence From Oregon’S Planning Goal 18

2020
By Dundas, Steven J. ; Lewis, David J.

Details

Journal Title:

Journal of the Association of Environmental and Resource Economists
Personal Author:

Dundas, Steven J. ; Lewis, David J.
NOAA Program & Office:

Sea Grant ; CIMRS (Cooperative Institute for Marine Resources Studies) ; NOS (National Ocean Service) ; OAR (Oceanic and Atmospheric Research) ; NCCOS (National Centers for Coastal Ocean Science)
Sea Grant Program:

NSGO/NSGLC (National Sea Grant)
Description:

Estimating nonmarket benefits for erosion protection can help inform better decision making and policies for communities to adapt to climate change. We estimate private values for a coastal protection option in an empirical setting subject to irreversible loss from coastal erosion and a land-use policy that provides identifying variation in the parcel-level option to invest in protection. Using postmatching regressions and accounting for potential spillovers, we find evidence that the value of the erosion protection option is between 13% and 22% of land price for parcels vulnerable to coastal hazards, implying that owners of oceanfront parcels have a subjective annual probability that they will experience an irreversible loss absent the option to protect between 0.7% and 1.3%. We also find that, because of altered shoreline wave dynamics, a parcel with a private protection option generates a spillover effect on protection-ineligible neighbors, lowering the value of neighboring land by 8%.
Keywords:

Coast changes
Source:

Journal of the Association of Environmental and Resource Economists,7(3)
DOI:

https://doi.org/10.1086/708092
Document Type:

Journal Article
Funding:

Grant no. NA11OAR4320091A ; Grant no. NA16OAR4320152 ; Grant no. NA18OAR170072
Place as Subject:

Oregon
Rights Information:

CC BY-NC
Compliance:

Submitted
Main Document Checksum:

urn:sha-512:a4978c878fe5cc34f568f582392e802174bb20560aa93293857b06dbfe796fc451717b0763dce7880d2faf1811deca5bc7f0206eabfc75d763c06daf4a67e78b
Download URL:

https://repository.library.noaa.gov/view/noaa/25735/noaa_25735_DS1.pdf
File Type:

[PDF - 2.37 MB ]

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