The value of coastal wetlands for protection of property against hurricane wind damage

Abstract

The paper has attempted to place a value on wetlands for their role in reducing wind damage to property because of diminished storm intensities. The study estimated a storm wind damage function for the Louisiana gulf coast, where inland distance of a location and wetlands traversed by a hurricane were among the independent was made of the increase in expected wind damage to property from the loss of intervening wetlands. The discounted value of the loss of a one mile strip of wetlands along Louisiana's gulf coast was estimated to be between $1.1 million and $3.7 million in 1980 dollars, using discount rates of 8% and 3%, respectively. Although it may not be too meaningful to place this on a per acre basis, this increased cost of property damage amounted to between $7 and $23 per acre. In order to place this in perspective, the market value of Louisiana wetlands is under $200 per acre. This market value is derived primarily from the mineral and hunting rights accompanying the surface area. This hurricane protection value is only one of many pure or quasipublic goods produced by wetlands. In order to make decisions regarding costly projects designed to retard wetlands erosion, such as revegetation or sediment transfers; or to consider wetlands destroying developments, such as pipeline canal construction, the value of these public goods must be estimated. The current study adds to our knowledge of these values. The next stage in this line of research is to evaluate the benefits that wetlands provide by reducing storm tidal surge. Flood damages to low-lying coastal areas are considerably greater than wind damage, and wetlands areas may be more useful for flood protection to these areas than for reducing storm intensities. Unfortunately, establishing a flood damage function similar to the wind damage function used in this study is difficult since it must consider unique hydrologic features of affected coastal areas.