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.     

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.     

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.     

Valuation of National Park System Visitation: The Efficient Use of Count Data Models, Meta-Analysis, and Secondary Visitor Survey Data

The National Park Service (NPS) currently manages a large and diverse system of park units nationwide which received an estimated 279 million recreational visits in 2011. This article uses park visitor data collected by the NPS Visitor Services Project to estimate a consistent set of count data travel cost models of park visitor willingness to pay (WTP). Models were estimated using 58 different park unit survey datasets. WTP estimates for these 58 park surveys were used within a meta-regression analysis model to predict average and total WTP for NPS recreational visitation system-wide. Estimated WTP per NPS visit in 2011 averaged $102 system-wide, and ranged across park units from $67 to $288. Total 2011 visitor WTP for the NPS system is estimated at $28.5 billion with a 95% confidence interval of $19.7–$43.1 billion. The estimation of a meta-regression model using consistently collected data and identical specification of visitor WTP models greatly reduces problems common to meta-regression models, including sample selection bias, primary data heterogeneity, and heteroskedasticity, as well as some aspects of panel effects. The article provides the first estimate of total annual NPS visitor WTP within the literature directly based on NPS visitor survey data.     

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.     

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.     

Can California coastal managers plan for sea-level rise in a cost-effective way?

This paper examines five representative sites on the California coast to illustrate a cost-effective methodology using tools and data that local decision makers can apply to analyse the economics of sea level rise (SLR) adaptation. We estimate the costs/benefits of selected responses (e.g. no action, nourishment, seawalls) to future flooding and erosion risks exacerbated by SLR. We estimate the economic value of changes to public/private property, recreational and habitat value, and beach related spending/tax revenues. Our findings indicate that the costs of SLR are significant but uneven across communities, and there is no single best strategy for adaptation. For example, Los Angeles's Venice Beach could lose $450 million in tourism revenue by 2100 with a 1.4 m SLR scenario while San Francisco's Ocean Beach would lose $80 million, but the impacts to structures could total nearly $560 million at Ocean Beach compared to $50 million at Venice Beach.     

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.     

The availability of primary nickel from the market economy countries

The US Bureau of Mines has determined the potential availability of nickel from 36 deposits or districts in 16 market economy countries (MECs). More than 95% of production in MECs was analysed. The study indicates the quantity of nickel available in resources and potential annual production at net production costs and on a total cost basis with a 0% and a 10% discounted cash flow rate of return (DCFROR). The properties included in this study contain approximately 33 million tonnes of recoverable nickel. About 26 million tonnes of nickel is potentially recoverable from nickel laterite deposits, of which 4.5 million tonnes can be produced at $2.50/lb or less with a 0% DCFROR. Approximately 7 million tonnes of nickel is potentially recoverable from nickel sulphide deposits of which about 6.3 million tonnes could be produced at $2.50/lb or less at a 0% DCFROR. Sensitivity studies indicate that the total cost of producing nickel from laterite deposits is most sensitive to increases in energy costs, and that the total costs of producing nickel from sulphide deposits is most sensitive to increases in labour costs and by changes in byproduct revenues.     

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.     

Estimating the Economic Value of National Parks with Count Data Models Using On-Site,Secondary Data: The Case of the Great Sand Dunes National Park and Preserve

We estimate an individual travel cost model for Great Sand Dunes National Park and Preserve (GSD) in Colorado using on-site, secondary data. The purpose of the on-site survey was to help the National Park Service better understand the visitors of GSD; it was not intended for a travel cost model. Variables such as travel cost and income were estimated based on respondents’ Zip Codes. Following approaches found in the literature, a negative binomial model corrected for truncation and endogenous stratification fit the data the best. We estimate a recreational benefit of U.S. $89/visitor/year or U.S. $54/visitor/24-h recreational day (in 2002 U.S. $). Based on the approach presented here, there are other data sets for national parks, preserves, and battlefields where travel cost models could be estimated and used to support National Park Service management decisions.     

ECONOMIC EVALUATION OF RIPARIAN BUFFERS IN AN AGRICULTURAL WATERSHED1

ABSTRACT: This study determines the most cost effective spatial pattern of farming systems for improving water quality and evaluates the economic value of riparian buffers in reducing agricultural nonpoint source pollution in a Midwestern agricultural watershed. Economic and water quality impacts of alternative farming systems are evaluated using the CARE and SWAT models, respectively. The water quality benefits of riparian buffers are estimated by combining experimental data and simulated water quality impacts of fanning systems obtained using SWAT. The net economic value of riparian buffers in improving water quality is estimated by total watershed net return with riparian buffers minus total watershed net return without riparian buffers minus the opportunity cost of riparian buffers. Exclusive of maintenance cost, the net economic value of riparian buffers in reducing atrazine concentration from 45 to 24 ppb is $612,117 and the savings in government cost is $631,710. Results strongly support efforts that encourage farmers to develop or maintain riparian buffers adjacent to streams.     

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.     

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.     

Measuring the Net Economic Value of Recreational Boating as Water Levels Fluctuate1

Abstract: The purpose of this article was to show how the value of recreational boating can be assessed and how that value can be linked to water levels. Data were gathered via a survey of recreational boaters to determine days boated and willingness‐to‐pay (net economic value) for boating on Lake Ontario and on the St. Lawrence River in 2002. Depth measurements were taken at marinas and yacht clubs, boat launch ramps, and private docks. Stage‐damage curves were used to pinpoint at what water levels and to what extent boaters would be impacted. Boaters recreated an estimated 1.3 million days in 2002 and spent an estimated US$178 million in New York counties bordering Lake Ontario and the St. Lawrence River. The mean net economic value per day per boat (above current expenditures) was $69.36, with an estimated total net economic value of US$90 million. Using Lake Ontario as an example, the stage‐damage curves show that the overall negative impact would be small, between 245 and 248 ft. Maintaining water levels within that range for the entire boating season would be ideal for Lake Ontario boaters and associated businesses.     

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.     

The Worldwide Availability of Gold

This paper summarizes Bureau of Mines research relating to the state of the world gold industry. The authors discuss the world gold industry structure, demonstrated gold resources, current production, and the long-term cost and availability of potential future gold production.
The long-term cost and availability of primary gold production from 111 significant producing mines and developing deposits in 13 market economy countries (MECs) is evaluated. Total recoverable gold available (as of January 1984) from the evaluated mines and deposits is estimated at 819 million troy ounces. The Republic of South Africa is estimated to account for 87% of total recoverable gold. The USA and Canada account for 4% and 4.5% of the total, respectively. Eighty-three per cent of total recoverable gold is available at a constant 1984 break-even price of $400 per ounce, and 70% is available at $300 per ounce. South Africa accounts for 90% of the gold available at $400 per ounce or less. Gold resources in the Soviet Union and China are discussed but not evaluated for costs of production. Some conclusions of the analyses are that South Africa should remain the largest world producer until the year 2000 and annual MEC output in the year 2000 should not be significantly different from current output, given constant 1984 gold prices of more than $300 per ounce.     

Energy analysis of nonmarket values of the Mississippi Delta

An energy analysis was used to estimate nonmarket values under various land cover scenarios in the Mississippi Delta. Land loss since 1900 has led to a decline in nonmarket values from $3.1 billion/year in 1900 to $2.5 billion in 1990, resulting in a total loss of $29.4 billion. This loss is concentrated in the Barataria-Terrebonne basins, where nonmarket value has dropped from $1.6 billion/year in 1956 to $1.3 billion/year in 1988. Although values are projected to increase in the Atchafalaya basin (from $723 million/year in 1988 to $756 million/year in 2058), total nonmarket value for the Louisiana coast is projected to decrease to $2.1 billion/year under currently approved levels of restoration.     

Cost-benefit analysis of an accelerated vehicle-retirement programme

High taxes on new cars in Israel provide an incentive for car owners to defer the purchase of new vehicles. The result is a vehicle fleet of older, more polluting vehicles, with air pollution costs estimated at up to $530 million annually. The purpose of this paper is to conduct a cost benefit analysis (CBA) of an accelerated vehicle-retirement (AVR) programme. The analysis considers the private car fleet as well as trucks and buses. The study develops an economic model to identify the optimal payment level that will maximise the net benefit of the programme, and then apply the model to three different vehicle categories. It finds that an AVR programme for private cars may indeed yield significant net benefits, while a similar programme for trucks and buses fails to meet the cost-benefit test. For private cars, the study finds that even according to a conservative estimate, the programme will result in the voluntary retirement of approximately 98,000 private cars, with a present value net benefit of more than $50 million. This is equal to a 17% reduction in total annual private car air pollution costs for the five-year time span of the proposed programme.     

Population,environment, and development

The strategies for reducing population growth include social development and improvement in the educational attainment of women. The decline in Kenya's growth rate was attributed to high female literacy and reduced infant mortality. Another strategy for enhancing fertility decline is to reduce child mortality, particularly from preventable causes such as diarrhea. The entire cost of such a strategy to reduce preventable disease would be about $1.33 per 300 million taxpayers in developed countries. Family planning services must be expanded. Prevention of maternal mortality and AIDS would bring major benefits. Strategies for environmental protection emphasized the already existing plan of action set out in the UNCED document Agenda 21 in Rio de Janeiro. The plan has suffered from inaction. The estimated cost of $625 million was considered to be several times smaller than the costs of inaction. The elimination of subsidies in tropical forests would have an immediate impact. Natural resource accounting at the national level would include the value of natural resources. Pricing would change radically for gasoline if the costs of urban smog, acid rain, low-level ozone pollution, and global warming were taken into account. Strategies for sustainable development pertained to the preceding strategies and others indicated in the Agenda 21 Action Plan. If funding were better targeted to the poorest 20% of global population with high fertility rates, the accomplishments would be heralded. 1.2 million are living in absolute poverty, and aid for nutrition, primary health care, water and sanitation, basic education, and family planning amounts to only 10% of expenditures. An increase to 20% would mean a contribution from Americans of $7.50 per person or 33% of $25 thousand million from all developed countries. Developing countries need to lower their military expenditures, privatize public enterprises, change inappropriate development policies, eliminate corruption, and improve national governance. The debt burden should be reduced.