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.     

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.     

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.     

Wildfire effects on hiking and biking demand in New Mexico: a travel cost study

We use a travel cost model to test the effects of wild and prescribed fire on visitation by hikers and mountain bikers in New Mexico. Our results indicate that net benefits for mountain bikers is $150 per trip and that they take an average of 6.2 trips per year. Hikers take 2.8 trips per year with individual net benefits per trip of $130. Both hikers' and mountain bikers' demand functions react adversely to prescribed burning. Net benefits for both groups fall as areas recover from prescribed burns. Because both visitation and annual recreation benefits decrease to these two types of visitors, this gives rise to multiple use costs associated with prescribed burning. With respect to wildfire, hikers and mountain bikers both exhibit decreased visitation as areas recover from wildfires, however, only hikers indicate an increase in per trip net benefits. Bikers' demand effectively drops to zero. These results differ from previous findings in the literature and have implications for efficient implementation of the National Fire Plan and whether prescribed burning is a cost effective tool for multiple use management of National Forests. Specifically, that fire and recreation managers cannot expect recreation users to react similarly to fire across recreation activities, or different geographic regions. What is cost effective in one region may not be so in another.     

ECONOMIC IMPACTS OF GUIDED WHITEWATER RAFTING: A STUDY OF FIVE RIVERS1

ABSTRACT: This paper presents estimates of the statewide economic impacts of guided whitewater rafting on five rivers in six states: the Nantahala (North Carolina), Gauley (West Virginia), Kennebec (Maine), Middle Fork of the Salmon (Idaho), and Chattooga (Georgia-South Carolina). Except for the Chattooga and Middle Fork, rafting is dependent on upstream dam releases. Guide fees range from about $15 per trip on the Nantahala to over $1,000 on the Middle Fork. Economic impacts per nonresident 1000 visitors increase along with length of the rafting trip and remoteness of the river. Total industrial output per 1000 nonresident visitors ranged from $95,000 on the Nantahala to over $2.5 million on the Middle Fork. However, because of differences in annual visitation levels, total impacts were greatest at the Nantahala, at over $14 million in 1993. Multipliers for all economic measures were relatively consistent over the rivers. Employment multipliers (Type III) ranged from 1.67 to 1.90, income multipliers from 2.0 to 2.4, and industrial output multipliers from 2.1 to 2.5.     

A Contingent Trip Model for Estimating Rail-trail Demand

The authors develop a contingent trip model to estimate the recreation demand for and value of a potential rail-trail site in north-east Georgia. The contingent trip model is an alternative to travel cost modelling useful for ex ante evaluation of proposed recreation resources or management alternatives. The authors estimate the empirical demand for trips using a negative binomial regression specification. Their findings indicate a per-trip consumer surplus ranging from US$18.46 to US$29.23 and a price elasticity of m 0.68. In aggregate, they estimate that the rail-trail would receive approximately 416 213 recreation visits per year by area households and account for a total consumer surplus in excess of US$7.5 million.     

Valuing nature-based recreation in public natural areas of the Apalachicola River region, Florida

As more people visit natural areas for tourism and recreation purposes, it is becoming increasingly important to understand the value they place on these natural resources. Specifically, tourists to Florida have been increasingly interested in visiting natural areas, forests, parks, and preserves-highlighting the importance of this new and growing phenomenon. We analyze visitors' demand for nature-based recreation in the Apalachicola River region of Florida using the travel cost method. The results from a count data regression model reveal that on average visitors would pay 74.18 dollars per visit-day for nature-based recreation resulting in a total economic value of 484.56 million dollars attributable to nature-based recreation in the Apalachicola River region. Results of this study provide useful information for natural resources management in the region and a rationale to preserve Florida's unique ecosystems.     

ASSESSING THE DIRECT EFFECTS OF STREAMFLOW ON RECREATION: A LITERATURE REVIEW1

ABSTRACT: A variety of methods have been used to learn about the relation between streamfiow and recreation quality. Regardless of method, nearly all studies found a similar nonlinear relation of recreation to flow, with quality increasing with flow to a point, and then decreasing for further increases in flow. Points of minimum, optimum, and maximum flow differ across rivers and activities. Knowledge of the effects of streamflow on recreation, for the variety of relevant activities and skill levels, is an important ingredient in the determination of wise streamflow policies.     

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.     

Estimating the economic value of ice climbing in Hyalite Canyon: An application of travel cost count data models that account for excess zeros

Recently, the sport of ice climbing has seen a dramatic increase in popularity. This paper uses the travel cost method to estimate the demand for ice climbing in Hyalite Canyon, Montana, one of the premier ice climbing venues in North America. Access to Hyalite and other ice climbing destinations have been put at risk due to liability issues, public land management agendas, and winter road conditions. To this point, there has been no analysis on the economic benefits of ice climbing. In addition to the novel outdoor recreation application, this study applies econometric methods designed to deal with “excess zeros” in the data. Depending upon model specification, per person per trip values are estimated to be in the range of $76 to $135.     

LAKE AND RWER QUALITY FOR RECREATION MANAGEMENT AND CONTINGENT VALUATION1

ABSTRACT: Accurate valuation of recreational lakes and rivers in contingent valuation (CV) studies requires that the definition of the environmental good being sold meets the requirements of correspondence, proximity, and familiarity. The concept of ‘water quality’ normally used fails to meet these requirements. This paper offers a broader concept of “lake/river quality” - a collection of physical, ecological, and aesthetic characteristics that create the opportunity for recreation, scenic enjoyment, and fish and wildlife propagation - that better describes the characteristics that recreationists value in lakes and rivers. The concept therefore better meets CV requirements and should be the basis for defining environmental improvements and declines to be hypothetically sold in CV surveys.     

Evaluating the PM damage cost due to urban air pollution and vehicle emissions in Seoul, Korea

This study evaluated the prospective damage costs of PM(2.5) inhalation. We performed a health risk assessment based on an exposure-response function to estimate the annual population risk in the Seoul metropolitan city, Korea. Also, we estimated a willingness-to-pay (WTP) amount for reducing the mortality rate in order to evaluate a statistical life value. We combined the annual population risk and the value-of-statistical-life to calculate the damage cost estimate. In the health risk assessment, we applied the PM(2.5) relative risk to evaluate the annual population risk. We targeted an exposure population of 5,401,369 persons who were over the age of 30. Using a Monte-Carlo simulation for uncertainty analysis, we estimated that the population risk of PM(2.5) inhalation during a year in Seoul is 2181 premature deaths for acute exposure and 18,510 premature deaths for chronic exposure. The monthly average WTP for 5/1000 mortality reduction over ten years is $20.20 USD (95% C.I: $16.60-24.50) and the implied value-of-statistical-life (VSL) is $485,000 USD (95% C.I: $398,000-588,000). The damage cost estimate due to risk from PM(2.5) inhalation in Seoul is about $1057 million USD per year for acute exposure, and $8972 million USD per year for chronic exposure. It is important to note that this cost estimate does not reflect all health damage cost estimates in this urban area. This recommendation is a model for evaluating a mortality risk reduction and as such we must re-evaluate an integrated application of morbidity risk.     

ECONOMIC EVALUATION OF AESTHETIC AMENITIES: A CASE STUDY OF RIVER VIEW1

ABSTRACT: Presence of a river in an urban setting may contribute positively to an aesthetically pleasing environment. Such aesthetic effects are not typically linked to specific economic activities and occur, for example, when residents are exposed to a river-view. Qualities enhancing the aesthetic value of the river include the presence of parks, trails, and vegetation along the riverbanks. The value of aesthetic amenities provided by the South Saskatchewan to the City of Saskatoon residents was estimated in this study using non-market methods. The implicit price of the river view was estimated using the Hedonic Price Model, whereas value through willingness to pay for property taxes or higher rents were also estimated using actual market data. The total annual value of the river to the City of Saskatoon through addition of aesthetic amenities was estimated at $1.2 million in 1989 dollars.     

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.     

Mountain substitutability and peak load pricing of high alpine peaks as a management tool to reduce environmental damage: A contingent valuation study

High alpine peaks throughout the world are under increasing environmental pressure from hikers, trekkers, and climbers. Colorado's “Fourteeners”, peaks with summits above 14,000 feet are no exception. Most of these peaks have no entrance fees, and reach ecological and social carrying capacity on weekends. This paper illustrates how a series of dichotomous choice contingent valuation questions can be used to evaluate substitutability between different alpine peaks and quantify the price responsiveness to an entrance fee. Using this approach, we find that peak load pricing would decrease use of popular Fourteeners in Colorado by 22%. This reduction is due almost entirely to substitution, rather than income effects. There is also price inelastic demand, as 60% of the hikers find no substitution for their specific Fourteener at the varying cost increases posed in the survey. The no substitute group has a mean net benefit of $294 per hiker, per trip, considerably higher than visitor net benefits in most recreational use studies.     

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.     

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.     

VALUING URBAN WATER ACQUISITIONS1

ABSTRACT: Municipalities typically seek additional water supplies whenever prospective population and economic growth suggests the inadequacy of currently available water supply. The benefit of supply enhancement is usually construed as avoiding debilitating water scarcity. A more effective approach to planning is to compare the benefits and costs of supply augmentation. The net present value of benefits for a supply increase in a representative Texas community is calculated for alternative scenarios relating to population growth, rate growth, and the temporal distribution of the increased supply. Consumer surplus measures are sensitive to all three of these factors and vary from $0 to over $4000 per acre-foot. A notable finding is that the added supply may offer zero values in cases where real water prices increase at an annualized rate of 4 percent (or greater) which is half the rate occurring in Texas from 1981–1985.     

USING CONTINGENT VALUATION AND BENEFIT TRANSFER TO EVALUATE WATER SUPPLY IMPROVEMENT BENEFITS1

ABSTRACT: Many water systems in small cities and rural areas throughout the United States are facing water quality and supply problems. These problems are typically not the result of an unexpected event, but are the result of growth trends or decreasing water quality experienced over several years. This analysis uses the contingent valuation and benefit transfer methods to evaluate the willingness to pay for a rural water system in northcentral Montana. Both of the procedures resulted in similar values, ranging from about $4.05 to $7.50 per household per month for urban residents and $5.40 to $11.50 per household per month for rural residents, which is equal to 11 percent to 23 percent of current average water costs. The willingness to pay estimates do not include non-household water users. This analysis shows that useful planning information can be obtained from relatively inexpensive contingent valuation mail survey data and the benefit transfer method as long as the limitations of the data are understood. The willingness to pay for ensuring good quality rural water supplies in the future is likely to be low compared to the costs of extensive diversion and treatment systems. Willingness to pay estimates provide decision makers with information that can be used to avoid building a large water supply system that water users do not want to connect to because of high costs.     

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.