Valuing Coastal Resources

Funding Agencies:

Core Research Funding Program, Northern Gulf Institute (NGI)

Partners:

Gulf Coast Research Laboratory (GCRL), University of Southern Mississippi
RSMAS : Cooperative Institute for Marine and Atmospheric Studies (CIMAS), University of Miami
National Sea Grant College Program, Louisiana State University
College of Agriculture, Florida A&M University
USDA : Conservation & Production Research Laboratory (CPRL), United States Department of Agriculture (USDA)

Project Description:

More than any other project of the Northern Gulf Institute, this project focuses on the relationship between people and the ecosystems, resources, and hazards of the Gulf Coast. Because almost all human decisions are dependent on time, uncertainty (risk), cost, and expected benefits, this project can shed light on how the choices of coastal residents, businesses, and other entities are influenced by those characteristics unique to the coast. Furthermore, because economic analysis is always geared toward understanding the value of things and how these values influence decisions, this project will provide a wide range of cost and benefit estimates that can be utilized by decision-makers at all levels to make choices that improve the quality of life along the Northern Gulf Coast.

Project Goals:

The overall objective of this project is to gain a better understanding of the value of coastal economic activity and ecosystems, the potential economic impacts of coastal hazards, and the unique economic drivers of coastal economies. In order to complete this objective, a two-dimensional approach will be followed. The first dimension will focus on ascertaining the value of key coastal resources that have been identified as both feasible tasks for the duration of the project and as resources that embody a host of amenities (value) including storm protection, recreation, historical and cultural amenities, and other ecosystem services. Because these natural resources are not market goods, it is necessary to undertake non-market valuation techniques, such as contingent valuation methods (surveying), to estimate these values.

Project Deliverables:

This project is subdivided into 10 subprojects (referred to as "tasks"), each headed by a sub-PI(s), with a research associate attached. Each task addresses a particular scientific question/issue.

Task 1. What is the economic value of restoring the Mississippi Barrier Islands?

Task 2. What is the economic value of and what are the publically-preferred methods for restoring coastal Louisiana?

Task 3. What is the economic impact of alternative land-use practices in the Upper Mississippi River Basin as it relates to Gulf of Mexico hypoxia? What are the possible impacts on Gulf hypoxia of increased corn production in the Basin due to increased demand for biofuels?

Task 4. Coastal natural disaster risk and insurance research needs: What are the critical policy questions and how can they be addressed?

Task 5. What are the key factors of a tropical storm forecast that influence evacuation behavior?

Task 6. What are the population migration flows following Hurricane Katrina, and are they spatially correlated to the path of the storm's inland track?

Task 7. What is the status of economic recovery of seafood processors and dealers, marinas, commercial harvesters, and bait dealers in coastal Mississippi?

Task 8. The Port of New Orleans: What is the impact of tropical storms on lost revenue due to diversion of cargo and lost income due to port inactivity, and what is the impact of port disruption on prices of key commodities?

Task 9. Toward developing a coastal business resiliency index: Are coastal communities more economically vulnerable than other groups of counties?

Task 10. Before and after Katrina: What were the local market capture, loss, retail viability, population, and income shifts in the Gulf Coast counties of Mississippi between 2004 to 2006?

Associated Publications:

Hanson, T. R., Evans, G., Myles, A., Patrolia, D. R., Coble, K. H., Posadas, B., Hodge, S., & Sempier, S. H. (2007). Developing a Foundation for Analysis of Natural and Human-Induced Disturbances to Coastal Economics. Center for Natural Resource Economics and Policy 2007 2nd National Forum on Socioeconomic Research in Coastal Systems. New Orleans, LA.

Petrolia, D. R., Evans, G., Kim, T., Ngeleza, G. K., & Muhammad, A. (2008). The Economics of the Northern Gulf Coast. NGI Conference. Biloxi, MS.

Patrolia, D. R., & Kim, T. (2008). Mississippi’s Barrier Islands: A Contingent-Valuation Approach for Estimating WTP for Restoration. 2008 Southern Natural Resource Economics Committee (SERA-30) Annual Meeting. Washington, DC.

Thomas, M. H., Letson, D., Mahoney, E., & Hanson, T. R. (2007). To Evacuate or Not To Evacuate, That is the Question: A Review of the Hurricane Evacuation Choices for Residents of Several Urban Communities. Center for Natural Resource Economics and Policy 2007 2nd National Forum on Socioeconomic Research in Coastal Systems. New Orleans, LA.