Economic valuation of preventing beach erosion: comparing existing and non-existing beach markets with stated and revealed preferences

Abstract

Predicted climate change is likely to increase beach erosion in the future, inducing higher costs of beach maintenance. Hence, additional funds for their protection will be required. We examine the willingness to pay (WTP) of beach visitors for preventing beach erosion in the form of daily beach entrance fees in Crikvenica, Croatia, by applying the contingent valuation method. This is the first beach valuation study for this country in transition which has emerged as an important Mediterranean tourist destination. The novelty of our study is that it compares WTP estimates for an existing and a non-existing beach market. This is done by conducting a survey at the beach where an entrance fee is already levied and at the nearest open-access beach. Based on the initial (follow-up) valuation question, the stated WTP per adult per day for avoiding beach erosion equals €1.69 (€1.26) for the paid beach and €2.08 (€1.84) for the free beach. In addition, the travel cost method is employed. It reveals that consumer surpluses for visiting the paid and the free beach amount to €2.57 and €1.74, respectively.

Keywords:

• contingent valuation
• Croatia
• entrance fees
• stated and revealed preferences
• travel cost method

The authors thank Wouter Botzen, Michael Creel, Giorgos Kallis, Joan Martínez Alier, and Filka Sekulova for valuable comments. This research was supported by the FPU programme of the Spanish Ministry of Education and Science.

Note

Notes

1. Converted by using data on purchasing power parities (PPP) for GDP from OECD Statistics. For 1988, an average of PPPs for all current euro zone countries was applied.