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A cost-benefit analysis of restoring the Em River in Sweden: valuation of angling site characteristics and visitation frequency

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  • Anton Paulrud
  • Thomas Laitila
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    Abstract

    This article uses Cost-Benefit Analysis (CBA) to evaluate restoration scenarios aimed at improving angling on the Em River in Sweden. We find that none of the proposed projects are socially profitable when considering only values associated with angling. We rely on a Choice Experiment (CE) to derive utilities and estimate the monetary value of angling site characteristics and then also use the utilities derived in a visitation frequency using a two-stage budgeting approach. The visitation frequency is then used to extract values for fishing license sales and business-related income. The case study illustrates how CBA can provide useful insights into the potential economic returns of environmental restoration projects. Our case study also indicates that the results in terms of Willingness-To-Pay (WTP) and visitation frequency are general findings -- i.e. they appear similar across angling sites -- which is particularly useful from a policy point of view because it supports the use of benefit transfer for more cost-effective river management.

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    File URL: http://hdl.handle.net/10.1080/00036846.2012.659348
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 45 (2013)
    Issue (Month): 16 (June)
    Pages: 2255-2266

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    Handle: RePEc:taf:applec:45:y:2013:i:16:p:2255-2266

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