Comparing the Economic Value of Mountain Biking Estimated Using Revealed and Stated Preference

This research compares non-market valuation techniques by applying a count data travel cost method (TCM) and dichotomous choice contingent valuation method (CVM) to a form of recreation for which it has not been previously applied: mountain biking. Due to mountain biking's increasing popularity these estimates of benefits may be useful in addressing conflicts. One of the most famous mountain biking sites in the US (Moab, Utah) was chosen as the site for which to apply these two models. The benefits that were estimated for trips taken in the spring of 1996 are US$205 and US$235,for the TCM and CVM, respectively.These values are not statistically different using conventional significant levels.     

Estimating the Recreation Demand and Economic Value of Mountain Biking in Moab,Utah: An Application of Count Data Models

This paper reports the results of both standard and truncated count data travel cost demand models for estimating demand for and the economic value to participants in mountain biking in the Moab, Utah, area. The empirical estimates for average trip demand per person per season were 2.25 and 2.53 trips under truncated Poisson and truncated negative binomial models, respectively. Consumer surplus per person per trip for both models was approximately US $585. The total annual use value for mountain biking in the Moab area was US $1.33 million. This value suggests that this recreation has a higher value than most other activities in the area and that public land managers should be aware of the relative value of mountain biking as they make allocation decisions.     

Non-market valuation of off-highway vehicle recreation in Larimer County, Colorado: Implications of trail closures

Few economic studies are available to measure off-highway vehicle recreation benefits foregone when trails must be closed to protect the environment. This paper estimates the non-market benefits associated with off-highway vehicle (OHV) recreation on National Forest lands in Larimer County, Colorado. We use a contingent valuation model (CVM) to estimate benefits to OHV users, which includes dirt bike riders, all terrain vehicle (ATV) riders, and 4-wheel drive (4 × 4) users. Using CVM we find the mean consumer surplus estimates to be $78 per person per day. These results are consistent with the few previous estimates of OHV recreation benefits. This equates to a per trail per summer consumer surplus of at least between $219,467 and $296,876, and a county level surplus per summer to be at least between $796,447 and $1,077,367. These benefits can be compared to environmental costs to obtain a more complete picture of the effects of trail closure, as well as the negative spillovers to non-motorized users.     

The contingent behavior of charter fishing participants on the Chesapeake Bay: Welfare estimates associated with water quality improvements

Water quality in the Chesapeake Bay has deteriorated over recent years. Historically, fishing has contributed to the region's local economy in terms of commercial and recreational harvests. A contingent behavior model is used to estimate welfare measures for charter fishing participants with regard to a hypothetical improvement in water quality. Using a truncated Poisson count model corrected for endogenous stratification, it was found that charter fishers not only contribute to the local market economy, but they also place positive non-market value on preserving the Bay's water quality. Using two estimates for travels costs it is estimated that the individual consumer surplus is $200 and $117 per trip, and the average individual consumer surplus values for an improvement in water quality is $75 and $44 for two models estimated.     

Who Visits a National Park and What do They Get Out of It?: A Joint Visitor Cluster Analysis and Travel Cost Model for Yellowstone National Park

Yellowstone National Park visitor data were obtained from a survey collected for the National Park Service by the Park Studies Unit at the University of Idaho. Travel cost models have been conducted for national parks in the United States; however, this study builds on these studies and investigates how benefits vary by types of visitors who participate in different activities while at the park. Visitor clusters were developed based on activities in which a visitor participated while at the park. The clusters were analyzed and then incorporated into a travel cost model to determine the economic value (consumer surplus) that the different visitor groups received from visiting the park. The model was estimated using a zero-truncated negative binomial regression corrected for endogenous stratification. The travel cost price variable was estimated using both 1/3 and 1/4 the wage rate to test for sensitivity to opportunity cost specification. The average benefit across all visitor cluster groups was estimated at between $235 and $276 per person per trip. However, per trip benefits varied substantially across clusters; from $90 to $103 for the “value picnickers,” to $185–$263 for the “backcountry enthusiasts,” $189–$278 for the “do it all adventurists,” $204–$303 for the “windshield tourists,” and $323–$714 for the “creature comfort” cluster group.     

ENVIRONMENTAL AUDITING: Economic Values of Recreational Power Boating Resources in Pennsylvania

/ The travel cost method was used to estimate the economic value of seven major power boating resources in Pennsylvania. A significant relationship between number of visitor trips and cost per visitor trip existed for five of the seven water bodies. The annual total value for those five resources was $396 million, which was 2.5 times greater than the total out-of-pocket expenditures of approximately $157 million visitors spent to visit them. Research results can help resource managers plan and craft programs and policies that are founded on economic values of the natural resources involved.     

Tourism and wetland conservation: application of travel cost and willingness to pay an entry fee at Ghodaghodi Lake Complex,Nepal

This study investigated the need and applicability of wetland tourism for resource conservation, using the case of Ghodaghodi Lake Complex, a Ramsar Site in western Nepal. The travel cost method (TCM) was used to determine the recreation potential of the lake complex, while the contingent valuation method (CVM) was used to calculate willingness of visitors to pay an entry fee as a payment vehicle for conservation. The per capita travel cost was found to be NPR 540 (US $7.71), while the mean willingness to pay an entry fee was NPR 34 (US $0.48) per visitor per entry. In addition, factors affecting wetland visitation rates and maximum willingness to pay were identified. Policy implications include the establishment of an entry fee system to offset conservation budgetary constraints, government investment in social benefits equating to at least per capita travel cost identified, and public‐private partnerships, with community participation in tourism promotion and wetland conservation.     

Estimating recreational trout fishing damages in Montana's Clark Fork River basin: summary of a natural resource damage assessment

This paper summarizes a natural resource damage assessment for the State of Montana. Mining wastes have caused significant reductions in trout stocks in a 145-mile stretch of Montana's Silver Bow Creek and Clark Fork River. To estimate economic damages from decreases in catch rates, we develop and estimate an individual-based utility-theoretic model of where and how often an angler will fish as a function of travel costs, catch rates, and other influential characteristics of the site and individuals. The model includes resident and nonresident anglers who currently fish in Montana, and allows them to have different preferences. Demand parameters and expected catch rates are simultaneously estimated. The value of time is endogenously estimated as a proportion of the wage rate. Catch rates are linked to trout stocks through a stock-catch function. Collection of the angler data involved a three-step process: anglers were intercepted at 26 study sites, a subsample of anglers was selected to reflect the population trip-taking proportions to the study sites, and these anglers received follow-up surveys through the fishing season. Avidity weights are used to correct for the higher level of avidity inherent in intercept samples.     

Economic Value of Instream Flow for Non-Commercial Whitewater Boating Using Recreation Demand and Contingent Valuation Methods

Whitewater river kayaking and river rafting require adequate instream flows that are often adversely affected by upstream water diversions. However, there are very few studies in the USA of the economic value of instream flow to inform environmental managers. This study estimates the economic value of instream flow to non-commercial kayakers derived using a Travel Cost Method recreation demand model and Contingent Valuation Method (CVM), a type of Contingent Behavior Method (CBM). Data were obtained from a visitor survey administered along the Poudre River in Colorado. In the dichotomous choice CVM willingness to pay (WTP) question, visitors were asked if they would still visit the river if the cost of their trip was $Y higher, and the level of $Y was varied across the sample. The CVM yielded an estimate of WTP that was sensitive to flows ranging from $55 per person per day at 300 Cubic Feet per Second (CFS) to a maximum $97 per person per day at flows of 1900 CFS. The recreation demand model estimated a boater’s number of trips per season. We found the number of trips taken was also sensitive to flow, ranging from as little as 1.63 trips at 300 CFS to a maximum number of 14 trips over the season at 1900 CFS. Thus, there is consistency between peak benefits per trip and number of trips, respectively. With an average of about 100 non-commercial boaters per day, the maximum marginal values per acre foot averages about $220. This value exceeds irrigation water values in this area of Colorado.     

An assessment of ecosystem services of Corbett Tiger Reserve,India

This paper examines the economic value of selected ecosystem services of Corbett Tiger Reserve, India. The direct cost was derived from secondary sources, and indirect and opportunity costs through socioeconomic surveys. For recreational value the individual approach to travel cost method was used, and to assess carbon sequestration the replacement cost method was used. The maintenance cost of the reserve was estimated as US $2,153,174.3 year⁻¹. The indirect costs in terms of crop and livestock depredation by wild animals ranged from US $2,153,174.3 year⁻¹. The indirect costs in terms of crop and livestock depredation by wild animals ranged from US 2,408 to US $37,958 village⁻¹ over a period of 5 years. The dependence of local communities was for fuel wood (US $37,958 village⁻¹ over a period of 5 years. The dependence of local communities was for fuel wood (US 7,346 day⁻¹), fodder (US $5,290 day⁻¹), small timber, and other nontimber forest products. The recreational value of the reserve was estimated as US $5,290 day⁻¹), small timber, and other nontimber forest products. The recreational value of the reserve was estimated as US 167,619 year⁻¹. With the cost per visitor being US $2.5, the consumers’ surplus was large, showing the willingness of visitors to pay for wildlife recreation. The forests of the reserve mitigate carbon worth US $2.5, the consumers’ surplus was large, showing the willingness of visitors to pay for wildlife recreation. The forests of the reserve mitigate carbon worth US 63.6 million, with an annual flow of US $65.0 ha⁻¹ year⁻¹. The other benefits of the reserve include US $65.0 ha⁻¹ year⁻¹. The other benefits of the reserve include US 41 million through generation of electricity since 1972. The analysis reveals that, though the benefits outweigh costs, they need to be accrued to local communities so as to balance the distribution of benefits and costs.     

Social and economic considerations in conserving wetlands of indo-gangetic plains: A case study of Kabartal wetland,India

The Kabartal wetland situated in the upper Indo-Gangetic flood plains in northern India is significant because of its hydrological and ecological services, and the socio-economic and cultural values that it represents. Despite being designated as a wildlife sanctuary, this wetland is under threat from anthropogenic pressures. As in the case of most wetlands, the reason is incomplete information on its ecological services and functions, breakdown of traditional management structures and the lack of appropriate and recognized property rights. Our study assesses the economic linkages between the Kabartal wetland and the local people living around it, through socio-economic surveys and Contingent Valuation Method (CVM). The major objective of the study was to determine the importance of this wetland to the local people and to give an indication of the distribution of the benefits among various stakeholders. The people in the region are poor, have low literacy levels and high dependence on Kabartal and more than 50% want that the wetland should be drained and the land used for agriculture. However, they are willing to participate in collaborative management initiatives with the state. The willingness of people to accept compensation, as an alternative to access to Kabartal wetland, regressed on various socio-economic and attitudinal parameters, gave an estimated mean value of US $27,500 per household over a period of 60 years. This value is a pointer of the total value of access to Kabartal wetland to the surrounding villagers and would be useful when decisions to compensate people for lost access to Kabartal are made.     

Valuation of Ecological Resources and Functions

/ Ecological resources are natural resources that provide certain necessary but overlooked system maintenance functions within ecosystems. Environmental economics is in search of an appropriate analysis framework to determine economic values of such resources. This paper presents a framework that estimates and compiles the components of value for a natural ecosystem. The framework begins with the ecological processes involved, which provide functions within the ecosystem and services valued by humans. We discuss the additive or competive nature of these values, and estimate these values through conventional and unconventional techniques. We apply the framework to ecological resources in a shrub-steppe dryland habitat being displaced by development. We first determine which functions and services are mutually exclusive (e.g., farming vs soil stabilization) and which are complementary or products of joint production (e.g., soil stabilization and maintenance of species). We then apply benefit transfer principles with contingent valuation methodology (CVM), travel cost methodology (TCM), and hedonic damage pricing (HDP). Finally, we derive upper-limit values for more difficult-to-value functions through the use of human analogs, which we argue are the most appropriate method of valuation under some circumstances. The highest values of natural shrub-steppe habitat appear to be derived from soil stabilization.KEY WORDS: Natural resource economics; Ecological economics; Ecological resources; Shrub-steppe; Environmental valuation; Cost; Benefit; Value     

Magnitude and distribution of option value for the Washakie Wilderness,northwest Wyoming,USA

Option value is estimated for the Washakie Wilderness, northwest Wyoming, USA, using the contingent valuation technique. Consumer surplus, the traditional measure of economic value, is estimated separately and compared with option value. Several populations are tested, including Washakie visitors, Yellowstone National Park visitors, and residents from four metropolitan test markets: Salt Lake City, Utah; Portland, Oregon; Nashville, Tennessee; and Orlando, Florida, USA. The average annual preservation option value (consumer surplus) expressed by on-site wilderness visitors is $46.17 ($80.13), by urban residents is $9.70 ($8.97), and by rural residents is $8.43 ($7.80). Four selected attributes are determined to be important in motivating option demand for the Washakie, including existence value, bequest value, the desire for an on-site visit, and interest in securing the visiting privileges of others. The results suggest that option value is important in wilderness valuation and that off-site users account for a large part of the economic value of wilderness.     

An Ecoregional Approach to the Economic Valuation of Land- and Water-Based Recreation in the United States

/ This paper describes a framework for estimating the economic value of outdoor recreation across different ecoregions. Ten ecoregions in the continental United States were defined based on similarly functioning ecosystem characters. The individual travel cost method was employed to estimate recreation demand functions for activities such as motor boating and waterskiing, developed and primitive camping, coldwater fishing, sightseeing and pleasure driving, and big game hunting for each ecoregion. While our ecoregional approach differs conceptually from previous work, our results appear consistent with the previous travel cost method valuation studies.KEY WORDS: Recreation; Ecoregion; Travel cost method; Truncated Poisson model     

Recreation benefits of natural area characteristics at the El Yunque National Forest

The paper applies the Contingent Valuation Method using a visitor survey to determine trip values to three rivers in northeastern Puerto Rico. Sample data were obtained from 984 interviews conducted in 13 sites during the summer months. The trip value is statistically decomposed into components representing natural features and recreation activities. The median net economic value of a river visit without waterfalls or foot trails is $96. Recreation at rivers with both waterfalls and foot trails has a median value of $138 per trip. The presence of waterfalls accounts for $23 and foot trails $19 per trip. This information can be pertinent for managers in selecting recreation site locations and protecting them from competing uses.     

Impacts of changes in water quality on recreation behavior and benefits in Finland

The implementation of the European Union Water Framework Directive (WFD) requires nationally generalizable estimates of the benefits of protecting inland and coastal waters. As an alternative to benefit transfers and meta-analyses, we utilize national recreation inventory data combined with water quality data to model recreation participation and estimate the benefits of water quality improvements. Using hurdle models, we analyze the association of water clarity in individuals' home municipalities with the three most common water recreation activities – swimming, fishing and boating. The results show no effect on boating, but improved water clarity would increase the frequency of close-to-home swimming and fishing, as well as the number of fishers. Furthermore, to value the potential benefits of the WFD, we estimate the consumer surplus of a water recreation day using a travel cost approach. A water policy scenario with a 1-m improvement in water clarity for both inland and coastal waters indicates that the consumer surplus would increase 6% for swimmers and 15% for fishers. In contrast to previously estimated abatement costs to improve water quality, net benefits could turn out to be positive. Our study is a promising example of applying existing national recreation inventory data to estimate the benefits of water quality improvements for the purposes of the WFD.     

Market and nonmarket values of the Georgia landscape

Natural landscapes produce goods and services, such as fish, wildlife, recreation, climate control, that are not adequately incorporated in their market values. Contingent Valuation (CV) and Energy Analysis (EA) approaches were used to estimate the nonmarket value of forests in Georgia. Both methods yielded similar estimates of approximately $200 ha^–1, which was 31% of the total market and nonmarket value of forests. Energy analysis was also used to estimate the nonmarket value of the major land uses in Georgia. Relative contributions of nonmarket value to total value ranged from 0.1% for urban areas to approximately 100% for wetlands. For the state as a whole, nonmarket production of natural and developed ecosystems was estimated at $2.6 billion. This value is comparable to annual marketed agricultural ($2.8 billion) and timber ($4.5 billion) production, both very important industries in Georgia. Changing land use patterns in Georgia and elsewhere are likely to be accompanied by shifts in the relative importances of market and non-market values.     

Analysing Conflict between Cultural Heritage and Nature Conservation in the Australian Alps: A CVM Approach

The contingent valuation method (CVM) can be useful for assessing the non-market economic values associated with government land use decisions. A particular variant of CVM, which is based on dichotomous choice responses, has become widely used. Previous studies have employed a variety of techniques for analysing dichotomous choice CVM data to produce estimates of economic welfare changes. This paper summarizes these analytical options, and illustrates their application in a case study concerning cattle grazing on the Bogong High Plains in the Australian Alps. This case study is one of the few to assess the non-market economic value of cultural heritage conservation using contingent valuation, and is also unusual in that the competing values are both non-market in character. Nature conservation and heritage values were separately measured using two independent surveys. Mean willingness to pay for nature conservation and cultural heritage were estimated using a range of parametric and nonparametric methods.     

An approach for integrating economic impact analysis into the evaluation of potential marine protected area sites

Marine protected areas (MPAs) are one tool that can be used in the comprehensive management of human activities in areas of the ocean. Although researchers have supported using MPAs as an ecosystem management tool, scientific research on MPAs in areas other than fisheries and fisheries management is limited. This paper presents a model for designing marine protected areas that protect important components of the ecosystem while minimizing economic impacts on local communities. This model combines conservation principles derived specifically for the marine environment with economic impact assessment. This integrated model allows for consideration of both fishery and non-fishery resources and activities such as shipping and recreational boating. An illustration of the model is presented that estimates the total economic impacts on Massachusetts' coastal counties of restricting fishing and shipping at certain sites in an area in the southern Gulf of Maine. The results suggest that the economic impacts on the region would differ according to the site in which shipping and fishing were restricted. Restricting activities in certain sites may have considerable impacts on local communities. The use of the model for evaluating and comparing potential MPA sites is illustrated through an evaluation of three different policy scenarios. The scenarios demonstrate how the model could be used to achieve different goals for managing resources in the region: protecting important components of the ecosystem, minimizing economic impacts on the local region, or a combination of the two.     

Contingent Valuation and Real Economic Commitments: A Private Good Experiment

The ultimate test of the accuracy of contingent valuation methods (CVM), in measuring benefits, is whether subjects will actually pay the amounts that they say they would be willing to pay in a CVM study. An experiment was conducted in which the maximum WTP of potential visitors to enter Warkworth Castle was compared against the acceptance of an entrance ticket at their stated CV price, thus providing a real monetary test of value and behavioural intention. Only 40% of potential visitors at the Castle gate were willing to make a real economic commitment following their CV WTP responses. Whilst the CVM results were found to be comparable with other CVM studies in terms of content and construct validity, they clearly failed a criterion validity test, even when the CVM survey was juxtaposed to the behavioural intention stage. CVM studies need to adopt stringent criteria in deciding the 'truthfulness' and 'legitimacy' of WTP responses, if CVM is to provide accurate and robust estimates of the value of environmental goods.