UHERO Publications
A market analysis for a transfer of development rights program to facilitate sea level rise adaptation
Sea level rise (SLR) poses an immense challenge to coastal communities worldwide. In Hawaiʻi, retreat from the shoreline is necessary to preserve beach ecosystems. Transfer of development rights (TDR) is one potential market-based tool to relocate development away from at-risk coastal areas. This study explores the applicability of TDR programs for SLR adaptation through a hypothetical market illustration for Oʻahu. Our findings suggest that TDR will be difficult to implement at a large, community-wide scale due to the high number and value of coastal properties coupled with existing ease of obtaining building density. However, we find that the market for TDR on Oʻahu becomes potentially viable under the narrow circumstances of greenfield development. We caution that such a program should only move forward with transparent land use tradeoffs and as part of a more comprehensive SLR retreat strategy. Our findings are applicable to areas with high value coastal real estate.