Economic analysis of choices among differing measures to manage coastal erosion in Hoi An (a UNESCO World Heritage Site)

Abstract

The paper presents one of the first economic analyses of residents’ choice of different coastal erosion control measures in a developing country — Vietnam. Hoi An, a UNESCO World Heritage Site, was selected given the frequency of coastal erosion events which have caused increasing damages to property, tourism activities and the livelihood of local people in an iconic tourist destination. We designed a discrete choice experiment based on responses from 399 households in order to estimate the willingness to pay (WTP) for differing coastal erosion control measures. Using the generalized multinomial logit model, empirical results yield five important findings. First, residents prefer wider, more public beaches having both trees and restaurants and are willing to accept visible structures such as groynes and stair revetment to prevent further erosion. Second, residents place a higher value on a beach that is protected by robust permanent structures. In particular, residents have the highest WTP for groynes. Third, there exists preference and scale heterogeneity across respondents which are driven by level of education, knowledge of the problem, and the stated level of choice certainty. Fourth, knowledge and experience of coastal erosion are shown to have a strong influence on the valuation residents place on the choice of protective structures. Finally, on average, a resident is willing to pay USD 1.7 per year for a coastal erosion management program that increases beach width by additional 50 meters, beach access by additional 25%, restaurants and trees on the beach and groynes as the erosion protection structure.