Estimating the Recreation Value of Ecosystems by Using a Travel Cost Method Approach
AbstractRecreation is one of the ecosystem’s secondary values of a well conserved natural ecosystem, associated with the direct use individuals make of these natural assets. In this paper we define and estimate the total economic recreation value to visitors of a particular natural area, a national park. An on-site individual observation Travel Cost Model, Count Data distributions, and a version of hyperbolic discounting framework distribution were used to estimate a measure for the present recreation use of the site and the total discounted recreation value for a 50 years period. The empirical estimates of the average representative visitor’s present equivalent surplus willingness to pay, based on the impact assumption of closure or loss of access to the park were 123 € per day per visit, and 593 € per each average five days length visit, per visitor. These values suggest that recreation use of nature has a higher value than certain economic activities in the area.
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Bibliographic InfoPaper provided by ISEG - School of Economics and Management, Department of Economics, University of Lisbon in its series Working Papers Department of Economics with number 2005/08.
Date of creation: 2005
Date of revision:
Contact details of provider:
Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC
Recreation Use Value; Ecosystem; Estimation; Travel Cost Method; Welfare Measures; Count Data Models.;
Find related papers by JEL classification:
- C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
- D1 - Microeconomics - - Household Behavior
- D4 - Microeconomics - - Market Structure and Pricing
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-08-13 (All new papers)
- NEP-ENV-2005-08-13 (Environmental Economics)
- NEP-SEA-2005-08-13 (South East Asia)
- NEP-TUR-2005-08-13 (Tourism Economics)
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