Economic Valuation of Beach Erosion Control Programs

In this study, we employ a choice-based conjoint survey design to elicit individual choices of beach erosion control programs that can potentially cause multiple effects on beach environment. Two empirical choice models which incorporate individual heterogeneity, are used to analyze and compare the elicited individual choices of erosion control programs. Our results show that to a typical individual, both the positive and negative impacts of the programs affect his/her choices. We find that the economic benefit of an erosion control program to preserve a stretch of sand beach can be grossly exaggerated if potential negative impacts on the coastal environment from the same program are not considered. This study demonstrates feasible comparisons of beach erosion control programs that account for their multiple effects as well as the demographics of program locations.