Valuing Seawall Protection in the Wake of Hurricane Ike

This paper estimates the value of seawall protection in the wake of Hurricane Ike using a difference-in-difference and fixed-effects type quasi-experimental approach. The analysis is based on residential housing transactions in Galveston, Texas from 2000 to 2014. The results suggest a positive price premium of up to 22% for seawall protected homes. The positive effect is found to be the highest after the occurrence of Hurricane Ike. Although as memory fades away the effect began decreasing gradually, the price premium of seawall protection still persists six years after Hurricane Ike.