Household Preferences for Managing Coastal Vulnerability: State vs. Federal Adaptation Fund

  • Tanvir PavelEmail author
  • Pallab Mozumder
Original Paper


People living in the coastal areas are highly vulnerable to the extreme weather events and climatic shocks. In this paper, we analyze households’ willingness to pay (WTP) for public adaptation funds to support proactive measures that would potentially minimize the extent of coastal vulnerability. Using split-sample dichotomous choice contingent valuation (CV) method, we investigate households’ preference for a state adaptation fund (SAF) versus a federal adaptation fund (FAF), lasting for either 5 or 10 years. We analyze more than 1200 randomly selected household responses from the counties of 10 Northeastern and Mid-Atlantic States that were adversely affected by a major hurricane (Sandy). From the annual estimates of median WTP, we observe that the households are willing to pay more for SAF ($68.37) than FAF ($27.35). The findings can provide inputs for policy evaluation to minimize coastal vulnerability, particularly to decide whether similar projects should be managed at the state or federal levels.


State adaptation fund (SAF) Federal Adaptation Fund (FAF) Willingness to pay (WTP) Natural disasters Hurricane Sandy 

JEL Codes

Q51 Q54 



We acknowledge support from the National Science Foundation (Award #0838683, #1204762, # 1832693), Florida Division of Emergency Management (DEM), International Hurricane Research Center and Southeast Environmental Research Center at the Florida International University, Miami, Florida. Nadia Seeteram, Sandra Maina, Eric Van Vleet, Subrina Tahsin, Fan Jiang, Sisi Meng, Shishir Sarker, and Chiradip Chatterjee have provided excellent research support. We are also thankful to survey participants and GFK (formerly Knowledge Networks) staff members who implemented the survey. However, the opinions expressed here are solely of the authors.


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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Department of EconomicsFlorida International UniversityMiamiUSA
  2. 2.Department of Earth and Environment and Department of EconomicsFlorida International UniversityMiamiUSA

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