Measuring Heterogeneous Preferences for Adaptation Strategies in Response to Sea Level Rise: Evidence from Miami-Dade County

Xuqi Chen; Zhifeng Gao; Xiang Bi

doi:10.3368/le.062620-0093R1

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Figure 1
Respondents’ Perceptions about Sea Level Rise
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Figure 2
Familiarity of the Three Adaptation Strategies
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Figure 3
Ranking Preference of the Three Adaptation Strategies

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Table 1

Comparison of Sample and Population’s Sociodemographics

Variable	Sample (2017)	Population (2016)
Number	267	2,712,945
Sex (%)
Female	52.4	51.5
Age (%)
18–24	1.9	8.7
25–34	4.5	14.3
35–44	21.4	13.8
45–54	17.2	14.8
55–64	28.5	12.0
65–74	21.7	8.5
75–84	4.5	5.1
85+	0.4	2.3
Educational Attainment (%)
Primary school (through 9th grade)	0.8	19
High school diploma or GED	7.5	28
Some college, no degree	12.7	25
Associate degree	10.1
Bachelor’s degree	33.3	18
Graduate/professional degree	35.6	10
Number of Kids (%)
# of kids in the household=0	71.5
# of kids in the household=1	14.6
# of kids in the household=2	12.0
# of kids in the household>=3	1.9
Annual Household Income (%)
<$19,999	5.2	55.8
$20,000–$29,999	3.8
$30,000–$39,999	7.5
$40,000–$49,999	4.9
$50,000–$59,999	4.5	25.9
$60,000–$69,999	6.7
$70,000–$79,999	12.7
$80,000–$99,999	11.6
$100,000–$129,999	13.9	9.9
$130,000–$149,999	9.0
$150,000–$199,999	7.5	3.7
$200,000+	12.7	4.7
Flood Insurance Holders (%)
Yes	54.3

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Table 2

Model Fitness Comparisons

	Models without Error Components		Models with 2 Error Components (Table 3)		Models with 3 Error Components (Appendix Table A3)		Models with 1 Error Component (Appendix Table A4)
	MIXL	G-MNL	MIXL+2ECs	G-MNL+2ECs	MIX+3ECs	G-MNL+3ECs	MIX+1EC	G-MNL+1EC
Log-likelihood	−2,642.18	−2,578.17	−2,617.77	−2,554.09	−2,614.54	−2,551.96	−2,621.87	−2,553.00
Information criterion AIC	5,306.4	5180.3	5,261.5	5,136.2	5,257.1	5,133.9	5,267.7	5,132.0
Pseudo R-squared	0.286	0.303	0.293	0.310	0.294	0.311	0.292	0.310

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Table 3

Regression Results with Two Error Components

Variable	MIXL		MIXL+2ECs		G-MNL		G-MNL+2ECs
Variable	Mean Estimate	St. Dev. Estimate	Mean Estimate	St. Dev. Estimate	Mean Estimate	St. Dev. Estimate	Mean Estimate	St. Dev. Estimate
Seawall	1.205^***	1.657^***	1.586^***	1.628^***	18.372^***	12.864^***	21.322^***	11.408^***
Seawall	(0.260)	(0.138)	(0.432)	(0.152)	(2.212)	(1.074)	(2.765)	(0.996)
Beach	1.145^***	1.050^***	1.461^***	0.894^***	16.046^***	2.053	18.990^***	8.685^***
Beach	(0.248)	(0.151)	(0.437)	(0.158)	(1.909)	(2.165)	(2.764)	(0.923)
Pump	0.817^***	1.085^***	1.146^**	1.037^***	10.928^***	10.948^***	16.088^***	6.688^***
Pump	(0.251)	(0.155)	(0.450)	(0.132)	(2.178)	(1.089)	(2.660)	(0.892)
Protection (years)	0.054^***	0.086^***	0.056^***	0.086^***	0.554^***	0.519^***	0.511^***	0.513^***
Protection (years)	(0.007)	(0.007)	(0.007)	(0.009)	(0.060)	(0.058)	(0.053)	(0.060)
Insurance	−0.132^***	0.215^***	−0.136^***	0.171^***	−1.450^***	1.217^***	−1.337^***	1.171^***
Insurance	(0.019)	(0.019)	(0.018)	(0.022)	(0.187)	(0.146)	(0.145)	(0.178)
Fees	−0.108^***		−0.107^***		1.0	0.0	1.0	0.0
Fees	(0.008)		(0.009)		Fixed	Fixed	Fixed	Fixed
Error component (strategies)			0.0	1.640^**			0.0	3.131^**
Error component (strategies)			Fixed	(0.664)			Fixed	(1.542)
Error component (status quo)			0.0	2.137^***			0.0	14.607^***
Error component (status quo)			Fixed	(0.647)			Fixed	(2.261)
Sigma sample mean (sample standard deviation)					2.053^**		8.685^***
Sigma sample mean (sample standard deviation)					(0.904)		(0.049)
Log-likelihood	−2,642.18		−2,617.77		−2,578.17		−2,554.09
Information criterion AIC	5,306.4		5,261.5		5,180.3		5,136.2
Pseudo R-squared	0.286		0.293		0.303		0.310
Sample size	267		267		267		267

Note: Standard errors are in parentheses, except sigma.
* p < 0.1;
↵** p < 0.05;
↵*** p < 0.01.

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Table 4

Seemingly Unrelated Regressions on Individual-Level Marginal Willingness to Pay

Individual-Level Marginal Willingness to Pay
Variable	(1) Seawall	(2) Beach Nourishment	(3) Pump	(4) Additional Years of Protection	(5) Additional Decrease in Flood Insurance Premium
Constant	15.890^***	21.569^***	15.133^***	0.254^*	0.858^***
Constant	(2.975)	(1.962)	(1.289)	(0.135)	(0.248)
White (Caucasian)	1.498	−1.625	0.571	0.021	−0.007
White (Caucasian)	(1.599)	(1.054)	(0.693)	(0.072)	(0.133)
Hispanic	−0.873	−1.902^*	1.919^**	0.012	−0.012
Hispanic	(1.730)	(1.141)	(0.750)	(0.078)	(0.144)
Age	0.492	0.018	−0.053	0.029^*	0.059^*
Age	(0.363)	(0.239)	(0.157)	(0.016)	(0.030)
Male	0.161	1.264^*	−0.285	−0.116^**	−0.164^*
Male	(1.002)	(0.661)	(0.434)	(0.045)	(0.084)
Household income	0.461^**	0.047	−0.108	0.001	0.041^***
Household income	(0.185)	(0.122)	(0.080)	(0.008)	(0.015)
Have waterfront residence^{^a}	2.024^*	0.031	−0.572	0.076	−0.019
Have waterfront residence^{^a}	(1.172)	(0.773)	(0.508)	(0.053)	(0.098)
Home values^{^b}	−2.917^*	0.034	0.531	0.011	0.018
Home values^{^b}	(1.610)	(1.062)	(0.698)	(0.073)	(0.134)
Flood insurance holder^{^c}	−1.741^*	−0.802	0.776^*	0.007	−0.073
Flood insurance holder^{^c}	(0.982)	(0.648)	(0.426)	(0.044)	(0.082)
Heard/seen seawall^{^d}	−2.301	−0.308	0.821	0.056	0.091
Heard/seen seawall^{^d}	(1.921)	(1.267)	(0.832)	(0.087)	(0.160)
Heard/seen beach nourishment	2.152	−0.732	−0.418	0.088	−0.111
Heard/seen beach nourishment	(1.488)	(0.981)	(0.645)	(0.067)	(0.124)
Heard/seen pumping	1.253	−1.137	0.199	−0.028	−0.011
Heard/seen pumping	(1.303)	(0.859)	(0.565)	(0.059)	(0.109)
Implemented seawall^{^e}	−5.620^*	−0.351	1.003	0.131	−0.239
Implemented seawall^{^e}	(3.179)	(2.096)	(1.378)	(0.144)	(0.265)
Implemented beach nourishment	5.888^**	−1.132	0.041	−0.016	−0.249
Implemented beach nourishment	(2.582)	(1.703)	(1.119)	(0.117)	(0.216)
Implemented pumping	−3.148	−2.588^*	1.233	0.042	0.035
Implemented pumping	(2.130)	(1.405)	(0.923)	(0.096)	(0.178)
Sample size	251	251	251	251	251

Note: Standard errors are in parentheses.
↵a Dummy variable for having waterfront residence.
↵b Home values were asked and recorded in unit of millions.
↵c Dummy variable was created to indicate whether those homeowners hold flood insurance for now.
↵d Dummy variables were created to indicate whether the respondents have heard or seen each of the three adaptation strategies.
↵e Dummy variables were created to indicate whether the respondents have each of the three adaptation strategies implemented in their neighborhood.
↵* p < 0.1;
↵** p < 0.05;
↵*** p < 0.01.