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Willingness to Pay for Margalla Hills National Park: Evidence from the Travel Cost Method

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  • Himayatullah Khan

Abstract

This study, which is among the first in Pakistan to value recreational benefits, estimates the benefits of the Margalla Hills National Park near Islamabad. The study examines how much park visitors are willing to pay to visit the park. Annual benefits from the park are considerable—the total annual consumer surplus or economic benefit obtained from recreation in the park is approximately Rs. 23 million (US $ 0.4 million). Various factors influence the value visitors obtain from the park — these include travel cost,household income, and the quality of the park. Improvements in the quality of the park are estimated to increase recreational benefits by 39%. The study recommends that a park entrance fee of Rs. 20 per person beintroduced, which could be utilized for park management. This would generate nearly Rs. 11 million in revenues annually, a sizable amount of money that represents about 4% of the annual budget allocated to the environment sector in Pakistan.

Suggested Citation

  • Himayatullah Khan, 2006. "Willingness to Pay for Margalla Hills National Park: Evidence from the Travel Cost Method," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 11(2), pages 43-70, Jul-Dec.
    • Handle: RePEc:lje:journl:v:11:y:2006:i:2:p:43-70
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    1. Pramod Lamsal & Kishor Atreya & Krishna Prasad Pant & Lalit Kumar, 2016. "Tourism and wetland conservation: application of travel cost and willingness to pay an entry fee at Ghodaghodi Lake Complex, Nepal," Natural Resources Forum, Blackwell Publishing, vol. 40(1-2), pages 51-61, February.
    2. Ali Chakir & Irfan Muhammad, 2021. "Estimating the recreational value for the sustainability of Hingol National Park in Pakistan," Environmental & Socio-economic Studies, Sciendo, vol. 9(2), pages 52-62, June.
    3. Shou-Lin Yang & Chiung-Ying Lee, 2015. "Analysis of the medical demands of elderly dementia patients considering the caregiver cost of medical accompaniment: an application of the travel cost method and altruistic utility function," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(1), pages 423-439, January.
    4. Himayatullah Khan, 2009. "Willingness to pay and demand elasticities for two national parks: empirical evidence from two surveys in Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(2), pages 293-305, April.

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