IDEAS home Printed from https://ideas.repec.org/a/kap/regeco/v28y2005i2p157-179.html
   My bibliography  Save this article

Using Revealed Preferences to Infer Environmental Benefits:Evidence from Recreational Fishing Licenses

Author

Listed:
  • Lori Bennear

    ()

  • Robert Stavins

    ()

  • Alexander Wagner

    ()

Abstract

We develop and apply a new method for estimating the economic benefits of an environmental amenity. The method is based upon the notion of estimating the derived demand for a privately traded option to utilize an open access good. In particular, the demand for state fishing licenses is used to infer the benefits of recreational fishing. Using panel data on state fishing license sales and prices for the continental United States over a 15-year period, combined with data on substitute prices and demographic variables, a license demand function is estimated with instrumental variable procedures to allow for the potential endogeneity of administered prices. The econometric results lead to estimates of the benefits of a fishing license, and subsequently to the expected benefits of a recreational fishing day. In contrast with previous studies, which have utilized travel cost or hypothetical market methods, our approach provides estimates that are directly comparable across geographic areas. Our findings show substantial variation in the value of a recreational fishing day across geographic areas in the United States. This suggests that current practice of using benefits estimates from one part of the country in national or regional analyses may lead to substantial bias in benefits estimates. Copyright Springer Science+Business Media, Inc. 2005

Suggested Citation

  • Lori Bennear & Robert Stavins & Alexander Wagner, 2005. "Using Revealed Preferences to Infer Environmental Benefits:Evidence from Recreational Fishing Licenses," Journal of Regulatory Economics, Springer, vol. 28(2), pages 157-179, September.
  • Handle: RePEc:kap:regeco:v:28:y:2005:i:2:p:157-179
    DOI: 10.1007/s11149-005-3107-7
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11149-005-3107-7
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:wsi:serxxx:v:62:y:2017:i:02:n:s0217590816500399 is not listed on IDEAS
    2. Alexander F. Wagner & Friedrich Schneider, 2006. "Satisfaction with Democracy and the Environment in Western Europe – a Panel Analysis," CESifo Working Paper Series 1660, CESifo Group Munich.
    3. Abdulbaki Bilgic & Wojciech Florkowski, 2009. "The impact of license regulation on the number of recreation trips: is it worth considering?," Journal of Regulatory Economics, Springer, vol. 35(1), pages 45-69, February.
    4. Ojumu, Gbenga & Hite, Diane & Fields, Deacue, 2016. "Economic Impact Of Recreational Fishing In Alabama," Professional Agricultural Workers Journal (PAWJ), Professional Agricultural Workers Conference, vol. 3(2).
    5. Ojumu, Oluwagbemiga & Hite, Diane & Fields, Deacue, 2009. "Estimating Demand For Recreational Fishing In Alabama Using Travel Cost Model," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46858, Southern Agricultural Economics Association.

    More about this item

    Keywords

    revealed-preference valuation; environmental benefits; recreational fishing day; Q26; Q21; Q22; H41;

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:regeco:v:28:y:2005:i:2:p:157-179. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.