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Conservation Fees in the Kgalagadi Transfrontier Park between Botswana and South Africa in the Presence of Land Restitution

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  • Johane Dikgang and Edwin Muchapondwa

Abstract

This paper estimates the visitation demand function for Kgalagadi Transfrontier Park (KTP) in order to determine the conservation fee to charge South African residents to maximise park revenue. We conducted contingent behavior experiments at KTP and three other national parks, which we assume are either substitutes or complements for visitors to KTP. Our random effects Tobit model shows that there is a wide variation in the own-price elasticities of demand between the parks but they are generally not elastic. The cross-price estimates indicate that there is limited substitutability in visitation demand among the four parks. The study uses the unitary elasticity rule to demonstrate that there is a possibility of raising conservation fees to revenue-maximising levels at KTP as well as the other parks, using methods such as a mandatory conservation fee increment or a community-bound voluntary donation above the regular conservation fee. Sharing conservation revenue with communities surrounding parks could demonstrate the link between ecotourism and local communities’ economic development, promote a positive view of land restitution involving national parks, help address South Africa’s heavily skewed distribution of income, and act as an incentive for the local communities to participate in conservation even more.

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Bibliographic Info

Paper provided by Economic Research Southern Africa in its series Working Papers with number 368.

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Length: 29 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:rza:wpaper:368

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Keywords: Contingent behavior; conservation fee; demand; land claim; national park;

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  1. Isabel Mendes, 2003. "Pricing Recreation use of National Parks for an efficient Nature Conservation and Application to the Portuguese case," Working Papers Department of Economics, ISEG - School of Economics and Management, Department of Economics, University of Lisbon 2003/08, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  2. Johane Dikgang and Edwin Muchapondwa, 2013. "The Effect of Land Restitution on Poverty Reduction Among the Khomani San "Bushmen" in South Africa," Working Papers, Economic Research Southern Africa 352, Economic Research Southern Africa.
  3. Riccardo Scarpa & Susan M. Chilton & W. George Hutchinson & Joseph Buongiorno, 1999. "Valuing the Recreational Benefits From the Creation of Nature Reserves in Irish Forests," Working Papers, Fondazione Eni Enrico Mattei 1999.11, Fondazione Eni Enrico Mattei.
  4. Alpizar, Francisco, 2006. "The pricing of protected areas in nature-based tourism: A local perspective," Ecological Economics, Elsevier, Elsevier, vol. 56(2), pages 294-307, February.
  5. Anna Alberini & Alberto Longo, 2006. "Combining the travel cost and contingent behavior methods to value cultural heritage sites: Evidence from Armenia," Journal of Cultural Economics, Springer, Springer, vol. 30(4), pages 287-304, December.
  6. Bergstrom, Theodore C & Rubinfeld, Daniel L & Shapiro, Perry, 1982. "Micro-Based Estimates of Demand Functions for Local School Expenditures," Econometrica, Econometric Society, Econometric Society, vol. 50(5), pages 1183-1205, September.
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