The change in producer surplus, in this case equivalent to
the change in revenue, is calculated by multiplying the
number of nights8 spent by tourists in 2004 in each accommodation
type by the hedonic price of the variable under
consideration. For the specification C3–L1 the loss from the
conversion of 1 km of open coast to 1 km dike is calculated by
adding the cost of a 1 km reduction in open coast to the cost of
a 1 km increase in dike length. The results are shown in
Table 8. For Westerland, this change in the coastal landscape
results in a loss of revenue of €825 979 per year. A loss of
€410 252 is estimated for Timmendorfer Strand. Table 9 shows
the loss estimates using the hedonic prices estimated for the
specifications C1–L1 and C2–L2. To calculate the loss from a 1 km change, the loss for a 1 percentage point change was
multiplied by 15 in the case of Westerland or by 17 in the case
of Timmendorfer Strand. These values are calculated from the
total coastal length of the respective districts. For Westerland
the estimated loss ranges from €826 489 to €1 017 806. The
former estimate is very close to that of the hedonic prices of
specification C3–L1. For Timmendorfer Strand the estimated
loss ranges from €465 239 to €572 933