The Price of Coastal Erosion and Flood Risk: A Hedonic Pricing Approach

Accelerated coastal erosion and elevated risks of flooding due to global warming put enormous burden on the ecosystems economic health communities. Optimal policies lessen these negative impacts require an estimation their costs benefits. The aim this paper is calculate beach flood risk through valuation property prices in Hilton Head Island, a barrier island located South Carolina, USA. Spatial lag hedonic pricing was introduced order account for spatial autocorrelation dataset. results show that properties are within zone high, or very experience 15.6% reduction value. implicit price being close eroded approximately 26% oceanfront property. However, impact value diminishes with distance from shoreline.