The Role of Wetlands for Mitigating Economic Damage from Hurricanes

Coastal communities along the United States coast often experience significant economic damage resulting from the impacts of tropical storms and hurricanes. Research suggests that certain factors that affect economic damages are increasing the vulnerability of coastal communities. Population growth, which increases vulnerability by placing valuable lives and assets in the path of storms, is expected to increase. Climate change has the potential to cause more frequent and intense storms, and coastal wetland loss is contributing to the vulnerability of coastal populations. Wetlands conservation and restoration is often advocated for as a means of reducing the impacts of coastal storms. The relationship between wetlands and storm surge energy is understood relatively well in physical terms, but very little economic analysis has been conducted to estimate the degree to which wetlands reduce economic impacts. Using factor analysis, the relationships among coastal populations, wetlands, storm intensity, and economic damage are explored. The factor analysis suggests that wetland presence is associated with a reduction in economic damages from coastal storms. Factor score analysis suggests that the proportion of damage explained by wetland presence is smaller for more intense storms. These results are consistent with those found in the physical science literature and have potentially large consequences for how wetlands are used in risk reduction.