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.     

Economic amenity values of wildlife: Six case studies in Pennsylvania

The travel clost method (TCM) and contingent valuation method (CVM) were used to evaluate the economic value of six different ecotourism activities involving observation of wildlife in Pennsylvania. The six activities were: catch-and-release trout fishing; catch-and-release trout fishing with fly-fishing equipment; viewing waterfowl; watching elk; observing migration flights of raptors; and seeing live wildlife in an environmental education setting. TCM results provided significant statistical relationships between level of use and travel costs for the two types of trout fishing activities. CVM provided estimates of consumer surplus for the other four sites. The consumers' surplus value (1988 dollars) of all six activities to participants amounted to a total of more than $1.28 million annually—twice the total out-of-pocket expenditures of approximately $640,000 spent to visit the sites. The economic amenity values of the six activities compare favorably with similarly derived values in other studies for hunting, fishing, hiking, and backpacking in dispersed recreation environments and wilderness areas in western states.     

MODELING COST-EFFECTIVENESS OF AGRICULTURAL NONPOINT POLLUTION ABATEMENT PROGRAMS ON TWO FLORIDA BASINS1

ABSTRACT: A model was developed to evaluate the cost-effectiveness of alternative “best management practice” (BMP) implementation schemes on two agricultural basins in Florida. The model selectively applies BMPs throughout the basin on a field by field basis, estimates the associated costs, and predicts the relative water quality improvement (reductions in nitrogen and phosphorus). The water quality model links field scale simulation (for detailed BMP evaluation) with basin delivery and attenuation functions to predict the basin-wide effects of any combination of BMPs. Fifteen BMP scenarios were evaluated to aid in prioritizing BMPs for implementation in these basins. Applying the maximum level of BMPs is estimated to cost around $1.2 million (annually), while the four most cost-effective BMPs would cost only one quarter as much, yet are projected to provide approximately 90 percent of the water quality improvement.     

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.     

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.     

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.     

Valuing river characteristics using combined site choice and participation travel cost models

This paper presents new welfare measures for marginal changes in river quality in selected English rivers. The river quality indicators used include chemical, biological and habitat-level attributes. Economic values for recreational use of three types of river-upland, lowland and chalk-are presented. A survey of anglers was carried out and using these data, two travel cost models were estimated, one to predict the numbers of trips and the other to predict angling site choice. These models were then linked to estimate the welfare associated with marginal changes in river quality using the participation levels as estimated in the trip prediction model. The model results showed that higher flow rates, biological quality and nutrient pollution levels affect site choice and influence the likelihood of a fishing trip. Consumer surplus values per trip for a 10% change in river attributes range from pound 0.04 to pound 3.93 ( pound 2001) depending on the attribute.     

COORDINATION OF PUBLIC AND PRIVATE AC A CASE STUDY OF LAKE RESTORATION1

ABSTRACT: The potential for joint public and private action for lake restoration is examined using Lake Apopka, Florida, as a case study. Initial calculations indicate that private incentives alone are inadequate to attract investment in a facility to grow and harvest water hyacinths for conversion to methane gas. However, the private externality of water quality improvement associated with harvesting water hyacinths provides a key linkage between the public's water quality objectives and the private gas producer's actions. In order to establish the potential basis for negotiation, the public's willingness-to-pay for environmental services associated with improved water quality is estimated and compared with the estimated subsidy required to induce private action. A conceptual framework is then presented for coordinating actions between private firms and public water management agencies in order to internalize the private externality of water quality improvement while simultaneously achieving the public and private objectives. Results indicate that the subsidization of water hyacinth production and harvesting compares favorably with alternative means of enhancing the water quality of Lake Apopka.     

ESTIMATION OF POTENTIAL REDUCTIONS IN RECREATIONAL BENEFITS DUE TO SEDIMENTATION1

ABSTRACT: A travel cost model is developed to estimate the potential reductions in recreational benefits from sedimentation in Reelfoot Lake in northwestern Tennessee. In addition to the consumer surplus estimates generated by the model, three other aspects of the study were significant. First, the study applied a relatively untested methodology for deriving the opportunity cost of travel time. The study resulted in a value that is less than one-half of the Water Resource Council's “one-third of the wage rate” rule-of-thumb. Second, water quality perceptions were unsuccessfully incorporated into the model as a demand shifter. This raised questions as to the appropriate manner in which perceptions could be included in a travel cost model. Finally, a simple methodology was outlined by which estimates of the recreational value of Reelfoot Lake could be used to suggest how much cost could be justified for soil erosion control on agricultural land surrounding the lake.     

AN OPTIMIZATION MODEL FOR EFFICIENT MANAGEMENT OF URBAN WATER RESOURCES1

ABSTRACT: A mathematical programming model is proposed to determine economically efficient urban water resource allocation and pricing policy by maximizing the sum of the consumer and producer surplus. The optimization of this nonlinear problem is accomplished by the use of linear programming algorithm. The feasibility of using recycled water for municipal purposes is examined in a planning context. The impact of higher water quality discharge standards on pricing and allocation of water is analyzed and the attractiveness of water reuse option is demonstrated.     

MODELING THE IMPACT OF SUBSURFACE NUTRIENT FLUX ON WATER QUALITY IN THE LOWER TRUCKEE RWER,NEVADA1

ABSTRACT: The impacts of regional groundwater quality and local agricultural activities on in-stream water quality in the Lower Truckee River, Nevada, were assessed through a detailed program of monitoring and computer simulation. An agricultural diversion and return-flow were monitored in great detail to determine mass loading rates of nutrients from agriculture in the area. Once characterized, the cumulative impacts of agricultural diversions and return-flows were evaluated using the Water Quality Assessment Program (WASP) to model nitrogen, phosphorus, periphyton, and dissolved oxygen. Monitoring showed that a significant proportion of the water diverted for agricultural purposes returned to the river as surface point return-flow (estimated at 13.9 percent $ 0.1 percent), and as groundwater diffuse return-flow (estimated at 27 percent $ 6 percent). Modeling efforts demonstrated the significant effect of assumed regional groundwater quality (nitrate) upon predicted periphyton growth and associated diel fluctuations of dissolved oxygen.     

A COST‐BENEFIT ANALYSIS OF WATER QUALITY PROTECTION IN THE CATAWBA BASIN1

ABSTRACT: The primary objective of this study was to perform a cost‐benefit analysis of maintaining the current level of water quality in the Catawba River basin. Economic benefits were estimated using a stated preference survey method designed to value respondents' willingness to pay for a management plan to protect water quality in the Catawba basin over time. From the surveys conducted with 1,085 area residents, we calculated an annual mean willingness to pay of $139 for the management plan, or more than $75.4 million for all taxpayers in the area. Over the five‐year time horizon in which respondents were asked to pay for the management plan, this resulted in a total economic benefit of $340.1 million. The Watershed Analysis Risk Management Framework model was used to estimate the amount of management activities needed to protect the current level of water quality in the basin over time. Based on the model results, the total cost of the management plan was calculated to be $244.8 million over a ten‐year period. The resulting cost‐benefit analysis indicated that the potential benefits of this management plan would outweigh the costs by more than $95 million.     

NUTRIENT LOADS TO WISCONSIN LAKES: PART II. RELATIVE IMPORTANCE OF NUTRIENT SOURCES1

ABSTRACT: A comparison of municipal wastewater treatment plant (WWTP) and nonpoint source nutrient loads to Wisconsin's 14,927 inland lakes was performed. Only 65 of the 2,925 Wisconsin lakes having surface areas of at least eight ha and a maximum depth of at least 2.4 m had one or more WWTP's located within 40 km upstream; 99 of Wisconsin's 477 WWTP's were identified to be upstream of these 65 lakes. WWTP total nitrogen and total phosphorus loads to these 65 lakes were estimated using per capita influent loads and removal efficiencies based on wastewater treatment types. Nonpoint source nutrient loads were calculated utilizing nutrient export coefficients derived specifically for Wisconsin. Total nitrogen inputs to the lakes were dominated by nonpoint sources. The effectiveness of various phosphorus control programs to produce water quality improvements visible to the public was estimated to be as follows (going from most to least effective): municipal phosphorus removal and agricultural reductions, municipal phosphorus removal alone, agricultural reduction plus phosphate detergent ban, agricultural reductions alone, and phosphate detergent ban alone. The last option would not be expected to produce water quality improvement visible to the public in any Wisconsin lakes. The differences between the distributions in Wisconsin of population and inland lakes highlights the need to consider regional characteristics in any statewide water quality management plan.     

Niagara region farmers' markets: local food systems and sustainability considerations

This article presents the findings of a survey of farmers' markets customers in the Niagara region of Ontario, Canada. The recent growth of farmers' markets in North America and the association of these markets with local food systems development provoke examination to gain insights into consumer motivations for patronizing these markets, and to then reflect on their potential role within locally oriented and sustainable food production systems. The survey carried out on customers of three Niagara region farmers' markets corroborates previous studies that noted that socioeconomic and cultural factors such as the importance of food freshness, support of local farmers and the local farm economy, and social interaction—embeddedness—are key expressions of people's support and interest in farmers' markets. This work serves to heighten our understanding of consumer attitudes toward direct marketing via farmers' markets, yields useful speculation about these markets and their roles in sustainable local food systems progress, and also raises critical questions about such customer patronage and associated farmers' markets potential in local food system development.     

Dynamics of fisheries that affect the population growth rate coefficient

Conventional surplus production models indicate that destruction of fish populations by overfishing is difficult, if not impossible, but catastrophic declines in abundance of exploited populations are common. Surplus production models also do not predict large continuing fluctuations in yield, but large fluctuations in yield are common. Conventional surplus production models assume that fisheries do not impact the population's capacity to increase, but changes in age structure or a decrease in age-specific fecundity resulting from fishing can decrease the coefficient of increase. A surplus production model is developed in which fishing reduces the capacity of a population to increase; the model is applied to describe the fluctuations observed in yield of lake herring (Coregonus artedii) from the upper Great Lakes. The fisheries of the Great Lakes were decimated by the combined effects of heavy fishing and a changing environment. For some species, yield increased to high levels and then the fisheries collapsed; for other species, yield and effort fluctuated greatly.     

ECONOMIC EFFECTS OF RIVER RECREATION ON LOCAL ECONOMIES1

ABSTRACT: Outdoor recreation is a major, growing use of water resources in the United States. The economic effects of expenditures by visitors to three recreational river sites on local economies surrounding the sites were estimated using an input-output model (IMPL.AN). Expenditure data were from the Public Area Recreation Visitors Study (PARVS). Results indicate that visitor spending stimulates a considerable amount of economic activity and growth in local economies. Economic effects include increases in total gross output ranging from $2.6 million to $13.4 million, increases in total income ranging from $1.2 million to $5.6 million, and increases in employment ranging from 60 to 292 jobs.     

VISITOR VALUES AND LOCAL ECONOMIC IMPACTS OF RIPARIAN HABITAT PRESERVATION: CALIFORNIA'S KERN RIVER PRESERVE1

ABSTRACT: Preservation of the few remaining ecologically vital riparian areas in the southwestern United States is a significant policy concern. This article reports on two economic aspects of preserving a nationally renowned riparian birding area in Southern California. First, the article examines visitor willingness to pay (WTP) for habitat restoration and estimates an annual WTP of US $77 per visitor to preserve the habitat, about a half‐million dollars a year for estimated visitor numbers in 2000 and 2001. Second, it documents visitor expenditures in the local economy to be approximately three‐quarters of a million dollars per year. This direct visitor spending attributable to the riparian habitat generates around US $1.3 million in increased local business activity in this relatively remote rural area.     

Decision making with option pricing and dynamic programming: development and application

In this study, an option pricing model and a dynamic programming model are developed. These models contribute to the improvement of the decision making process in two respects. First, these models allow for the own growth rate of mining costs to be incorporated into the analysis. Second, these models are developed to estimate the satisfactory gross revenue for investing, so that these models are helpful in analyzing multi-metal mines.The two models are applied to estimate the satisfactory revenue for investing in the Carlin east gold mine, Nevada, USA. The satisfactory revenue estimated by the option pricing model is found to be $42.2M, while that estimated by the dynamic programming model is found to be $44.4M. Since the revenue calculated on the basis of the current conditions is $36M, then the decision by option pricing and dynamic programming is to wait and not to invest now. Despite the difference between the two models in estimating and applying the discount rate, the two models generate the same decision.     

Environmental change and fishery management in the northern Persian Gulf

Approximately 52% of the 380,000 tons of fish landings in Iran come from the northern Persian Gulf, with a total of 108,000 fishermen and 8900 fishing vessels (2003 data). The fishery in the region is very important for the local economy, but the major problems facing the Iranian fisheries are an uncertain availability of fish and over-fishing. The Persian Gulf is a sensitive marine ecosystem. The Gulf is a partially enclosed sea with an average depth of 35 metres and replacement of waters take some three to five years. Environmental factors have a major effect on fish stocks and fisheries in such a sensitive ecosystem. This study examines the influence of environmental changes in water temperature, rainfall, wind and sea level pressure on fish stocks in the northern Persian Gulf and estimates the maximum sustainable yields for fisheries management. Multivariate data and surplus production bio-economic models with environmental parameters are used to determine optimal harvest and forecasting. The study found that rainfall, water temperature and wind had significant positive effects whereas sea level pressure had a negative effect on the fisheries in the northern Persian Gulf. It is concluded that environmental parameters should be monitored concurrently with the fisheries to allow a greater understanding for fisheries management in the Persian Gulf.     

Allocation of supplementary aeration stations in the Chicago waterway system for dissolved oxygen improvement

The Chicago Waterway System (CWS), used mainly for commercial and recreational navigation and for urban drainage, is a 122.8 km branching network of navigable waterways controlled by hydraulic structures. The CWS receives pollutant loads from 3 of the largest wastewater treatment plants in the world, nearly 240 gravity Combined Sewer Overflows (CSO), 3 CSO pumping stations, direct diversions from Lake Michigan, and eleven tributary streams or drainage areas. Even though treatment plant effluent concentrations meet the applicable standards and most reaches of the CWS meet the applicable water quality standards, Dissolved Oxygen (DO) standards are not met in the CWS during some periods. A Use Attainability Analysis was initiated to evaluate what water quality standards can be achieved in the CWS. The UAA team identified several DO improvement alternatives including new supplementary aeration stations. Because of the dynamic nature of the CWS, the DUFLOW model that is capable of simulating hydraulics and water quality processes under unsteady-flow conditions was used to evaluate the effectiveness of new supplementary aeration stations. This paper details the use of the DUFLOW model to size and locate supplementary aeration stations. In order to determine the size and location of supplemental aeration stations, 90% compliance with a 5 mg/l DO standard was used as a planning target. The simulations showed that a total of four new supplementary aeration stations with oxygen supply capacities ranging from 30 to 80 g/s would be sufficient to meet the proposed target DO concentration for the North Branch and South Branch of the Chicago River. There are several aeration technologies, two of which are already being used in the CWS, available and the UAA team determined that the total capital costs of the alternatives range from $35.5 to $89.9 million with annual operations and maintenance costs ranging from $554,000 to $2.14 million. Supplemental aeration stations have been shown to be a potentially effective means to improve DO concentrations in the CWS and will be included in developing an integrated strategy for improving water quality in the CWS.