To the Water's Edge, and Beyond: Effects of Shore Protection Projects on Beach Development

Posted: 29 Apr 2002

See all articles by Joseph J. Cordes

Joseph J. Cordes

George Washington Institute of Public Policy (GWIP)

Dean H. Gatzlaff

Florida State University

Anthony M. Yezer

George Washington University - Department of Economics

Abstract

The effects on real estate development of shore protection efforts that lower erosion rates and storm hazards are both controversial and difficult to detect. A simple theoretical model indicates that shore protection is likely to "tilt" development from areas a few hundred feet inland toward beachfront property. Using a modified repeat sale house price index in which price appreciation rates are measured, literally, to the water's edge, we are able to formulate an extremely sensitive empirical test for a tilt in rates of house price appreciation implied by a tilt in produced additional beachfront development in the Florida counties studied. The method used in this paper is quite general and could be used in a number of applications where an environmental effect impacts real estate differentially over space.

Keywords: repeat sale, beachfront, environmental impact, shore protection

Suggested Citation

Cordes, Joseph J. and Gatzlaff, Dean H. and Yezer, Anthony M., To the Water's Edge, and Beyond: Effects of Shore Protection Projects on Beach Development. Available at SSRN: https://ssrn.com/abstract=304061

Joseph J. Cordes

George Washington Institute of Public Policy (GWIP) ( email )

805 21st Street, NW
Media and Public Affairs Building, Room 602
Washington, DC 20052
United States
202-994-5826 (Phone)
202-994-6147 (Fax)

HOME PAGE: http://www.gwu.edu/~pubpol/cordesbio.html

Dean H. Gatzlaff

Florida State University ( email )

College of Business, Center for Real Estate
821 Academic Way, Rovetta Business Bldg
Tallahassee, FL 32306-1110
United States
850-644-4071 (Phone)
850-644-4077 (Fax)

Anthony M. Yezer (Contact Author)

George Washington University - Department of Economics ( email )

Monroe Hall, Suite 340
2115 G Street, NW
Washington, DC 20052
United States

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