2B.10A - Economic and Social Losses from Recession
Economic losses (housing, businesses, agricultural land, infrastructure) and social losses (relocation, loss of livelihood, amenity value) from coastal recession can be significant, especially in areas of dense coastal developments.
Economic
Loss of (or damage to) property in the form of homes, businesses and farmland, so relatively easy to quantify. The losses tend to be very localised and costs depend on the land's use and location.
In 2015, the EA valued English agricultural land at £21,000 per ha, and industrial/business land at £500,000 per ha.
Residential land can vary from £500,000 (North Yorkshire, cold climate, boulder clay) to £2.1 million per ha (Dorset, warm climate, Jurassic coast).
Re-rerouting a two lane road can cost between £150,000 and £250,000 per 100 m. The collapse of the section of coast supporting the South Devon Main Line Railway in February 2014 cost £35 million to repair, and businesses in the South West lost £60 million.
Other consequences:
- Economic losses to businesses if areas become unattractive and depopulated.
- A whole village could be at risk (part social)
- Falling property values, and an inability to sell property
- Unexpected recession can cause localised loss:
- In 1993 140 mm of rain in 2 months led to the collapse of the £2 million Holbeck Hall Hotel in Scarborough, in a slump of 1 million tonnes of boulder clay.
- Loss of a major asset, and the costs of buying a new home
- An inability to insure against the loss (because its a certainty, not a risk)*
*There is little help available for those who lose their homes to the sea. There is no national compensation scheme. The UK has the 'Coastal Change Pathfinder' projects, 15 two-year projects funded in 2010 by DEFRA which:
- Gave the East Riding of Yorkshire £1.2 million, and funded relocation and demolition for 43 homes.
- Cover the cost of property demolition and site restoration
- Provide up to £1000 in relocation expenses (removal vans, storage...)
- Provide up to £200 in hardship expenses
- Have 'rollback' policies, giving people fast tracked planning approval to build a new home somewhere else
The Environment Agency estimates 800 properties will be lost by 2035
Overall, though, the economic losses are small because:
- Erosion happens slowly; a small number of properties are affected over decades.
- Property at risk looses its value to buyers long before it is at risk from erosion
- Areas of high-density population, such as towns and villages, tend to be protected by coastal defences. (which means the actual economic loss is much lower)
Social
Relocation
- Cost (can be quantified)
- Break up of community, loss of friends and activities like a football team or classes
- Also stressful!
- Source of income (can be quantified)
- Financial problems and job searching leads to stress (and divorces, etc...)
There are also losses in amenity value and economic losses to businesses if areas become unattractive and depopulated. For example, abandoned buildings, damaged roads, rerouted footpaths, loss of access to beach. (Amenity value is the value in cultural, human well-being and economic terms of an attractive environment people enjoy using.)
Unattractive environment - cliff collapse, failing sea defences and blocked roads/paths