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Amenity values and payment schemes for free recreation services from non-industrial private forest properties: A French case study

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  • Gadaud, Juliette
  • Rambonilaza, Mbolatiana

Abstract

Free-access recreation on private forest property is gaining in importance with the increasing social demand for forest-based recreation. The amended French Forest Law of 2001 provides for schemes with a voluntary contract, in terms of which private forest owners are paid to maintain an open-access forest for nature-based recreational activities, which are largely public goods. The main objective of this paper is to analyze private forest landowners' commitment to free-access recreation services on their properties. We develop a framework to estimate their willingness-to-accept (WTA) values as a measure of the financial compensation that they expect in exchange of reduced forest amenity values due to a public recreation use management plan. Since forest holdings are permanently exposed to several types of risk, the willingness-to-accept measure is defined within a subjective expected utility modeling approach. Our empirical analysis draws on data from a contingent valuation design carried out in 2006 in the Landes district in France. The empirical distribution of the subjective probability of fire risk is deduced from the forest owners' perception of fire risks due to free recreation use. We then introduce our measurements of the fire risk as explanatory variables of the forest owners' financial compensation requirements.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Forest Economics.

Volume (Year): 16 (2010)
Issue (Month): 4 (December)
Pages: 297-311

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Handle: RePEc:eee:foreco:v:16:y:2010:i:4:p:297-311

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Related research

Keywords: Contingent valuation Uncertainty Fire risk Outdoor recreation Willingness-to-accept;

References

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  1. Janse, Gerben & Ottitsch, Andreas, 2005. "Factors influencing the role of Non-Wood Forest Products and Services," Forest Policy and Economics, Elsevier, vol. 7(3), pages 309-319, March.
  2. Beach, Robert H. & Pattanayak, Subhrendu K. & Yang, Jui-Chen & Murray, Brian C. & Abt, Robert C., 2005. "Econometric studies of non-industrial private forest management: a review and synthesis," Forest Policy and Economics, Elsevier, vol. 7(3), pages 261-281, March.
  3. Peter A. Groothuis & John C. Whitehead, . "Does Don't Know Mean No? Analysis of 'Don't Know' Responses in Dichotomous Choice Contingent Valuation Questions," Working Papers 9814, East Carolina University, Department of Economics.
  4. Alejandro Caparrós & Pablo Campos & Gregorio Montero, 2003. "An Operative Framework for Total Hicksian Income Measurement: Application to a Multiple-Use Forest," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(2), pages 173-198, October.
  5. McConnell, Kenneth E., 1985. "The economics of outdoor recreation," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 15, pages 677-722 Elsevier.
  6. W. Viscusi & Harrell Chesson, 1999. "Hopes and Fears: the Conflicting Effects of Risk Ambiguity," Theory and Decision, Springer, vol. 47(2), pages 157-184, October.
  7. Graham, Daniel A, 1981. "Cost-Benefit Analysis under Uncertainty," American Economic Review, American Economic Association, vol. 71(4), pages 715-25, September.
  8. Campos, Pablo & Caparros, Alejandro, 2006. "Social and private total Hicksian incomes of multiple use forests in Spain," Ecological Economics, Elsevier, vol. 57(4), pages 545-557, June.
  9. Hogarth, Robin M & Kunreuther, Howard, 1989. " Risk, Ambiguity, and Insurance," Journal of Risk and Uncertainty, Springer, vol. 2(1), pages 5-35, April.
  10. Kahn, Barbara E & Sarin, Rakesh K, 1988. " Modeling Ambiguity in Decisions under Uncertainty," Journal of Consumer Research, University of Chicago Press, vol. 15(2), pages 265-72, September.
  11. Amigues, Jean-Pierre & Boulatoff (Broadhead), Catherine & Desaigues, Brigitte & Gauthier, Caroline & Keith, John E., 2002. "The benefits and costs of riparian analysis habitat preservation: a willingness to accept/willingness to pay contingent valuation approach," Ecological Economics, Elsevier, vol. 43(1), pages 17-31, November.
  12. Mary Riddel & W. Shaw, 2006. "A theoretically-consistent empirical model of non-expected utility: An application to nuclear-waste transport," Journal of Risk and Uncertainty, Springer, vol. 32(2), pages 131-150, March.
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Cited by:
  1. Lindhjem, Henrik & Mitani, Yohei, 2012. "Forest owners’ willingness to accept compensation for voluntary conservation: A contingent valuation approach," Journal of Forest Economics, Elsevier, vol. 18(4), pages 290-302.
  2. Bernetti, Iacopo & Ciampi, Christian & Fagarazzi, Claudio & Sacchelli, Sandro, 2011. "The evaluation of forest crop damages due to climate change. An application of Dempster-Shafer method," Journal of Forest Economics, Elsevier, vol. 17(3), pages 285-297, August.

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