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The Economics of Beach Nourishment in Delaware

by Linda Lent, Economic Consultant, 6625 Bradley Blvd., Bethesda, MD 20817, United States,
Chris Holleyman, Economic Consultant, 6625 Bradley Blvd., Bethesda, MD 20817, United States,
Michael Lawrence, Economic Consultant, 6625 Bradley Blvd., Bethesda, MD 20817, United States,
Christopher Jones, Economic Consultant, 6625 Bradley Blvd., Bethesda, MD 20817, United States,



Document Type: Proceeding Paper

Part of: Sand Rights '99: Bringing Back the Beaches

Abstract:

This study provides a detailed examination of the benefits of Delaware's ongoing nourishment program, and examines the incidence of benefits to those who live within and outside of the State. For the five-year period analyzed, the results indicate that more than 268,000 visitors will choose other vacation locations, more than $20.1 million of consumer's surplus will be lost for those who no longer vacation on Delaware's beaches and associated tourism revenues will decrease by more than $30.2 million. This reduction in revenues will cause the loss of 625 beach area jobs, and reduce wages and salaries by $11.5 million, profits by $1.6 million, and state and local revenues by $2.3 million. During the five years, beach area properties will drop nearly $43.3 million in value. Most of the benefits of shoreline nourishment accrue to those outside of Delaware because most of the visitors and property owners reside in other states. Nonetheless, the $9 million in nourishment costs over five years is more than offset in the benefits to Delaware residents, which total more than $19 million.

Subject Headings: Economic factors | Coastal management | Beach protection and nourishment | Revenues | Benefit cost ratios | Beaches | Tourism | Delaware | United States

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