Shore Protection and Beach Erosion Control Study: Economic Effects of Induced Development in Corps-Protected Beachfront Communities.

This report addresses the economic relation between Federally sponsored shore protection projects and development patterns in coastal areas. The purpose of the research was to ascertain whether such Federally sponsored projects increased the rate and extent of development in protected areas, i.e. induced development. The results of the analysis are as follows Based upon an analysis and comparison of beachfront communities, with and without Corps shore protection projects, there is no evidence that such projects induce development along the protected shoreline. Residents of beachfront communities do not perceive the Corps as the sole source of protection for their erosion or storm damage problems, regardless of whether the Corps is actually active in their beachfront community or not. Awareness of the Corps among residents in beachfront communities decreases with wealth and increases with time of residence in the community. This implies that new residents, those economic agents who recently made the investment decision and are affecting the growth and pattern of development, did not explicitly take into account the presence of a Corps shore protection project as a part of their information or rationale used for selecting the location of their investment. The existence of a Corps shore protection project is not statistically significant in generating changes in the pattern and growth of development in beachfront communities. Indeed, the significant variables are income and employment, indicators of aggregate economic activity. When the whole economy in a regional coastal area grows, the rate of development in the beachfront community grows as well, with or without a Federal shore protection project.