Coastal Resiliency through Value Capture and Transfer: A Framework Proposal

Abstract

Coastal property is becoming more dynamic as it is subjected to the forces of climate change. This is particularly true for low-lying coastal areas, where climate-induced change is altering long-standing public policies associated with coastal development. In the US, attempts to address the new reality of climate change from a programmatic standpoint are generally referred to as resiliency planning. This article explores the concept of resiliency planning from a cost-orientated approach, viewing low-lying coastal property as areas of evolving risk. From this viewpoint, we develop a value transfer framework proposal that attempts to identify and quantify existing coastal asset values and engage in a transfer of the value to less risky inland areas that have been identified as economic development priority areas. The goal is to provide a risk-based, “cost center” approach to land use and related policymaking in risky coastal areas. This proposal attempts to highlight an example of a hazard-based policy intervention that maximizes opportunities to reduce coastal hazard risk, optimizes the social and economic utility of existing coastal investment through a transfer of development rights approach that is designed to build and enhance coastal resiliency. Future work can improve and build upon the principles set forth in the following framework proposal.

Keywords:

• climate change
• coastal management
• public policy
• resiliency planning
• sea level rise

Notes

1 For purposes of the inland receiving site, it is presumed these areas have been highlighted for economic development, in part, because they do not contain similar active hazard characteristics or potential as explained for coastal areas. It is assumed that the multitude of factors highlighted by Ouazad and Kahn (2019) that allow for risk accumulation in coastal real estate markets, including the many studies cited therein, do not exist in inland areas, thus allowing market forces to ensure a more proper risk balance.