An economic framework for making management decisions on tidal shoreline erosion is provided. It provides for evaluation of the impacts of coastal erosion on shoreland property and structures. Coefficients for estimating erosion‐induced losses to property and dwellings were determined. Lots which contained a dwelling decreased in value by an average of $0.24 for each square foot of soil lost to erosion. Decrease in value of dwelling due to erosion‐induced loss of distance between dwelling and shoreline was an average decrease of $8.64 per foot of distance lost. These values plus other measures were applied to three case study coastal areas in Virgina. The evaluation procedure provided a realistic basis for comparisons: (1) of benefits and costs of selected erosion control measures; (2) between various levels of control; and (3) distribution of costs of controls among property owners and between the private and public sectors.