Estimating Option Values and Spillover Damages for Coastal Protection: Evidence from Oregon’s Planning Goal 18
Steven Dundas and
David Lewis
Journal of the Association of Environmental and Resource Economists, 2020, vol. 7, issue 3, 519 - 554
Abstract:
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%.
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
http://dx.doi.org/10.1086/708092 (application/pdf)
http://dx.doi.org/10.1086/708092 (text/html)
Access to the online full text or PDF requires a subscription.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ucp:jaerec:doi:10.1086/708092
Access Statistics for this article
More articles in Journal of the Association of Environmental and Resource Economists from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().