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Simulated Exchange Value Method: Applying Green National Accounting to Forest Public Recreation

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  • Jose L. Oviedo
  • Pablo Campos
  • Alejandro Caparrós

Abstract

While applied national accounts are based on market costs and outputs, non-market valuation techniques yield estimates for consumer or Hicksian surplus. To integrate non-market values in national accounts we propose the Simulated Exchange Value method, which simulates the whole market (demand and cost functions) to obtain exchange values. We focus on forest public recreational services because they are relatively close to markets and have been frequently valued using non-market valuation techniques. We apply this method to the public visitor recreational services of the woodlands of Alcornocales Natural Park (southwestern Spain). We estimate the cost function using available data on government costs incurred in the provision of recreational services and we estimate the demand function through contingent valuation. Using both functions, we analyze two potential solutions for the simulated market: monopoly and perfect competition. The results show for monopoly and for perfect competition, respectively, a net operating margin of €0.74/ha and of €0.61/ha, and a total social income of €3.14/ha and of €3.23/ha.

Suggested Citation

  • Jose L. Oviedo & Pablo Campos & Alejandro Caparrós, 2010. "Simulated Exchange Value Method: Applying Green National Accounting to Forest Public Recreation," Working Papers 1016, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    • Handle: RePEc:ipp:wpaper:1016
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    References listed on IDEAS

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    Cited by:

    1. Remme, Roy P. & Edens, Bram & Schröter, Matthias & Hein, Lars, 2015. "Monetary accounting of ecosystem services: A test case for Limburg province, the Netherlands," Ecological Economics, Elsevier, vol. 112(C), pages 116-128.
    2. Paola Ovando & José L. Oviedo & Pablo Campos, 2015. "Measuring total social income of a stone pine afforestation in Huelva (Spain)," Working Papers 1501, Instituto de Políticas y Bienes Públicos (IPP), CSIC.

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    More about this item

    Keywords

    national accounts; total income; accounting prices; contingent valuation; environmental services.;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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