| The Journal of Real Estate Finance and Economics | |
| Volume 22, Issue 2&3, Article 9 (Abstract) | |
| Title: | To the Water's Edge, and Beyond: Effects of Shore Protection Projects on Beach Development |
| Author: | Joseph J. Cordes, Dean H. Gatzlaff and Anthony M. Yezer |
| 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 |