Spatial Heterogeneity in the Economic Value of Beach Proximity

Chang Wang

No 404453, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: Coastal property markets are influenced by unique environmental attributes, yet traditional models often assume their economic value is spatially constant. This study investigates the spatial heterogeneity of beach proximity value in Glynn County, Georgia, using a geographically weighted spatial lag (GWSL) hedonic model. By analyzing 42,152 residential transactions from 1984 to 2021, we find that the effect of beach proximity on house prices is highly non-stationary, with significant capitalization concentrated in barrier islands. Our results reveal a powerful spatial multiplier, which indicates that property wealth is highly socialized through localized price spillovers. Applying individual local parameters, we estimate a mean Total Marginal Willingness to Pay (MWTP) of $1.06 million for a 100-meter reduction in network distance to the shoreline.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 30
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404453

DOI: 10.22004/ag.econ.404453

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