Estimating the recreation value of beach nourishmentJohn Whitehead, Dan Phaneuf, Chris Dumas, Jim Herstine, Jeff Hill, Bob Beurger

2007 AAEA Meetings

A comparison of two demand models Linked multiple-site revealed preference / trip

frequency model Single-site revealed preference and stated

preference model Convergent validity:

Change in willingness to pay Change in beach trips

Study Beaches

Data

2003 Telephone Survey 351 Respondents

Restricted to those with X = Σxi

SP: Increase average width by 100 feet

Revealed preference trips 10.06

Stated preference trips 11.93

SP trips with improved access 15.41

SP trips with increased width 12.85

Beach Trips (%) Width Access Park Length

Fort Macon 4.56 90 2 602 1.40

Atlantic Beach 21.08 135 19 662 4.90

Pine Knoll Shores 0.85 110 6 195 4.80

Indian Beach / S.P. 1.14 90 2 131 2.50

Emerald Isle 11.11 130 69 550 11.50

North Topsail Beach 3.42 82 42 929 9.70

Surf City 5.7 90 36 272 5.10

Topsail Beach 1.99 110 37 234 4.00

Wrightsville Beach 24.22 160 45 1479 4.50

Carolina Beach 7.98 185 26 452 2.00

Kure Beach 2.56 130 20 223 2.80

Fort Fisher 1.14 400 2 240 1.90

Caswell Beach 0.28 80 12 103 2.80

Oak Island 2.28 120 66 821 7.50

Holden Beach 3.7 90 21 200 6.80

Ocean Isle Beach 6.55 85 28 341 5.30

Sunset Beach 1.42 115 34 260 1.20

Multiple Site Single Site

Predicted additional trips 0.36 1.08

Predicted total trips 10.64 11.14

Change in WTP per trip 2.93 6.53

Annual change in WTP 31.23 72.78

Conclusions

Beach nourishment has recreation value Multiple site and single site models are not

convergent valid

Round Table Discussion

1. How can economists inform coastal management decisions that traditionally rely most heavily on civil and environmental engineering?

2. How do dynamic models of beach management inform the ways in which we should formulate non-market valuation questions about hazard mitigation and beach amenities?

3. What insights can recreation remand, hedonic property models, and other representations of preferences for coastal resources provide to dynamic management models?

4. The round table will also allow the audience to participate in the discussion and pose questions to the panelists.

How can economists inform coastal management decisions that traditionally rely most heavily on civil and environmental engineering?

How do dynamic models of beach management inform the ways in which we should formulate non-market valuation questions about hazard mitigation and beach amenities?

What insights can recreation remand, hedonic property models, and other representations of preferences for coastal resources provide to dynamic management models?