To the Water's Edge, and Beyond : Effects of Shore Protection Projects on Beach Development

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