Benefits and ancillary costs of natural infrastructure: Evidence from the New Jersey coast
Steven Dundas ()
Journal of Environmental Economics and Management, 2017, vol. 85, issue C, 62-80
This paper empirically estimates the economic impacts of a large-scale public investment in natural infrastructure aimed at adapting to climate change and increasing coastal resilience. I utilize temporal and spatial variation in investment in dunes to provide a hedonic property value estimate of the economic benefits. I identify the net effect of treatment utilizing the doubly robust Oaxaca-Blinder estimator and show that coastal housing price increases attributable to constructed dunes are approximately 3.6%. A decomposition of the average impact suggests that the policy intervention generates ancillary costs related to impaired ocean views and privacy concerns that partially offset large protection benefits.
Keywords: H54; Q51; Q54; Q58; Dunes; Natural infrastructure; Climate adaptation; Oaxaca-Blinder; Hedonics; Policy evaluation (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:85:y:2017:i:c:p:62-80
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Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates
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