What’s a (Better) Beach Day Worth? Economic Valuation of Changes in Waikīkī Beach Characteristics

Abstract Whether beach nourishment, an established beach management measure, is justified depends on its benefits and costs. We apply a discrete choice experiment at Waikīkī Beach on Oʻahu with mixed logit and latent class models to evaluate recreationists’ willingness to pay for changes in beach width and water clarity as well as the preferences for the beach as-is. Our preferred specification indicates heterogeneity among subjects, who have distinct preferences for the recreation site. Based on the beach attendance data, the aggregate willingness to pay justifies beach re-nourishment and runoff control measures.