IDEAS home Printed from https://ideas.repec.org/p/apl/wpaper/12-01.html
   My bibliography  Save this paper

Willingness to Pay for Downtown Public Goods Generated by Large, Sports-Anchored Development Projects: The CVM Approach

Author

Listed:
  • Bruce K. Johnson
  • John C. Whitehead
  • Daniel S. Mason
  • Gordon J. Walker

Abstract

North American cities have long encouraged redevelopment of their downtown cores to counteract the flight of residents and business to the suburbs in the postwar period. Building subsidized arenas and stadiums for professional sports teams downtown became common in the 1960s. In recent years, downtown stadiums and arenas have been proposed as components in larger redevelopment projects containing a number of other amenities, as well, including housing and other entertainment attractions. The justification for such developments rests in part on the public goods generated by vibrant, prosperous downtowns. Yet little is known about the value of such downtown public goods. This paper reports the results of two Contingent Valuation Method surveys to determine willingness to pay for new National Hockey League arenas in downtown Edmonton and Calgary in the Canadian province of Alberta. The hypothetical scenarios in both surveys varied to include affordable housing, a casino, and cultural space in addition to the arena. The surveys provide the first estimates of willingness to pay for downtown public goods for sports arenas, and also provide the first estimates of scope effects, that is, the willingness to pay for expansions of public goods, in the sports economics literature. Key Words:

Suggested Citation

  • Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2012. "Willingness to Pay for Downtown Public Goods Generated by Large, Sports-Anchored Development Projects: The CVM Approach," Working Papers 12-01, Department of Economics, Appalachian State University.
  • Handle: RePEc:apl:wpaper:12-01
    as

    Download full text from publisher

    File URL: http://econ.appstate.edu/RePEc/pdf/wp1201.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giles Atkinson & Susana Mourato & Stefan Szymanski & Ece Ozdemiroglu, 2008. "Are We Willing to Pay Enough to `Back the Bid'?: Valuing the Intangible Impacts of London's Bid to Host the 2012 Summer Olympic Games," Urban Studies, Urban Studies Journal Limited, vol. 45(2), pages 419-444, February.
    2. Peter A. Groothuis & Bruce K. Johnson & John C. Whitehead, 2004. "Public Funding of Professional Sports Stadiums: Public Choice or Civic Pride?," Eastern Economic Journal, Eastern Economic Association, vol. 30(4), pages 515-526, Fall.
    3. Bruce K. Johnson & Peter A. Groothuis & John C. Whitehead, 2001. "The Value of Public Goods Generated by a Major League Sports Team," Journal of Sports Economics, , vol. 2(1), pages 6-21, February.
    4. Dennis Coates, 2007. "Stadiums And Arenas: Economic Development Or Economic Redistribution?," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 565-577, October.
    5. Bruce K. Johnson & Michael J. Mondello & John C. Whitehead, 2006. "Contingent Valuation of Sports," Journal of Sports Economics, , vol. 7(3), pages 267-288, August.
    6. Fernando Diaz Orueta & Susan S. Fainstein, 2008. "The New Mega‐Projects: Genesis and Impacts," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 32(4), pages 759-767, December.
    7. BK. Johnson & JC. Whitehead, 2000. "Value of public goods from sports stadiums: the CVM approach," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 48-58, January.
    8. Bruce K. Johnson & Peter A. Groothuis & John C. Whitehead, 2000. "“The Value of Public Goods Generated by a Major League Sports Team: The CVM Approach,”," Working Papers 0014, East Carolina University, Department of Economics.
    9. Baade, Robert A & Dye, Richard F, 1988. "An Analysis of the Economic Rationale for Public Subsidization of Sports Stadiums," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 22(2), pages 37-47, July.
    10. Paul F. Whiteley (ed.), 1998. "Economic Policy," Books, Edward Elgar Publishing, volume 0, number 996, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. And sometimes I snap
      by John Whitehead in Environmental Economics on 2012-04-23 19:30:51

    Citations

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


    Cited by:

    1. Funahashi, Hiroaki & Shibli, Simon & Sotiriadou, Popi & Mäkinen, Jarmo & Dijk, Bake & De Bosscher, Veerle, 2020. "Valuing elite sport success using the contingent valuation method: A transnational study," Sport Management Review, Elsevier, vol. 23(3), pages 548-562.
    2. Vörös, Tünde, 2017. "Költség-haszon elemzési keretrendszer sportberuházások társadalmi-gazdasági értékeléséhez [An economic framework for cost-benefit analysis of sports facilities]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 394-420.
    3. See, Chan Ken, 2017. "Intangible value in preserving the Sports Arenas," MPRA Paper 81505, University Library of Munich, Germany.
    4. Jones, Benjamin A. & Berrens, Robert P. & Jenkins-Smith, Hank & Silva, Carol & Ripberger, Joe & Carlson, Deven & Gupta, Kuhika & Wehde, Wesley, 2018. "In search of an inclusive approach: Measuring non-market values for the effects of complex dam, hydroelectric and river system operations," Energy Economics, Elsevier, vol. 69(C), pages 225-236.
    5. Rongrong Zheng & Jiasui Zhan & Luxing Liu & Yanli Ma & Zishuai Wang & Lianhui Xie & Dunchun He, 2019. "Factors and Minimal Subsidy Associated with Tea Farmers’ Willingness to Adopt Ecological Pest Management," Sustainability, MDPI, Open Access Journal, vol. 11(22), pages 1-12, November.
    6. Pamela Wicker & John C Whitehead & Daniel S Mason & Bruce K Johnson, 2017. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Urban Studies, Urban Studies Journal Limited, vol. 54(15), pages 3597-3614, November.
    7. Bernd Frick & Pamela Wicker, 2018. "The Monetary Value of Having a First Division Bundesliga Team to Local Residents," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 70(1), pages 63-103, February.
    8. Robert, Ruszkowski, 2017. "The Contingent Valuation Method in assessing the value of sport’s stadium in developing nations. The case of Poland," MPRA Paper 80581, University Library of Munich, Germany.
    9. Fanbin Kong & Kai Xiong & Ning Zhang, 2014. "Determinants of Farmers’ Willingness to Pay and Its Level for Ecological Compensation of Poyang Lake Wetland, China: A Household-Level Survey," Sustainability, MDPI, Open Access Journal, vol. 6(10), pages 1-15, September.
    10. Wiker, Dagmara, 2017. "The valuation of publicly financed sport’s arenas," MPRA Paper 82913, University Library of Munich, Germany.
    11. Kaitlyn Harger & Brad R. Humphreys & Amanda Ross, 2016. "Do New Sports Facilities Attract New Businesses?," Journal of Sports Economics, , vol. 17(5), pages 483-500, June.
    12. Michael Spanbauer & Lindsay Johnson & Patrick Button, 2017. "How Valuable are National Parks? Evidence from a Proposed National Park Expansion in Alaska," Working Papers 1707, Tulane University, Department of Economics, revised Mar 2018.
    13. Stephanie F. Stefanski & Jay P. Shimshack, 2016. "Valuing Marine Biodiversity in the Gulf of Mexico: Evidence from the Proposed Boundary Expansion of the Flower Garden Banks National Marine Sanctuary," Marine Resource Economics, University of Chicago Press, vol. 31(2), pages 211-232.
    14. su, chin, 2015. "Estimation of the Willingness to Pay for Preserving the Sports Arenas. The case of Poland," MPRA Paper 74182, University Library of Munich, Germany, revised 2016.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huang, Haifang & Humphreys, Brad, 2012. "Do New Sports Facilities Revitalize Urban Neighborhoods? Evidence from Residential Mortgage Applications," Working Papers 2012-5, University of Alberta, Department of Economics.
    2. Bernd Süssmuth & Malte Heyne & Wolfgang Maennig, 2010. "Induced Civic Pride and Integration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(2), pages 202-220, April.
    3. J. Lucy Lee & Jeffrey D. James, 2015. "Assessing sport brand value through use of the contingent valuation method," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 3(6), pages 33-44, December.
    4. Bernd Frick & Pamela Wicker, 2018. "The Monetary Value of Having a First Division Bundesliga Team to Local Residents," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 70(1), pages 63-103, February.
    5. Dennis Coates & Victor Matheson, 2011. "Mega-events and housing costs: raising the rent while raising the roof?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(1), pages 119-137, February.
    6. Robert W. Baumann & Victor A. Matheson & Chihiro Muroi, 2009. "Bowling in Hawaii," Journal of Sports Economics, , vol. 10(1), pages 107-123, February.
    7. Wicker, Pamela & Kiefer, Stephanie & Dilger, Alexander, 2013. "The value of sporting success to Germans: Comparing the 2012 UEFA Championships with the 2012 Olympics," Discussion Papers of the Institute for Organisational Economics 11/2013, University of Münster, Institute for Organisational Economics.
    8. Peter A. Groothuis & Bruce K. Johnson & John C. Whitehead, 2004. "Public Funding of Professional Sports Stadiums: Public Choice or Civic Pride?," Eastern Economic Journal, Eastern Economic Association, vol. 30(4), pages 515-526, Fall.
    9. Bruce Johnson & Mike Mondello & John C. Whitehead, 2004. "Contingent Valuation of Sports Stadiums and Arenas: Temporal Embedding and Order Effect," Working Papers 04-15, Department of Economics, Appalachian State University, revised 2005.
    10. Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2007. "Willingness To Pay For Amateur Sport And Recreation Programs," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 553-564, October.
    11. Francisco Rosas & Santiago Acerenza & Peter F. Orazem, 2020. "Optimal pricing strategies for a cluster of goods: own- and cross-price effects with correlated tastes," Applied Economics, Taylor & Francis Journals, vol. 52(7), pages 742-755, February.
    12. John R. Crooker & Aju J. Fenn, 2008. "Estimating Local Welfare Generated by a Professional Sports Team: An Application to the Minnesota Vikings under Threat of Relocation," Working Papers 0805, University of Central Missouri, Department of Economics & Finance, revised May 2008.
    13. Christina Fischer & Rüdiger Hamm, 2019. "Football clubs and regional image [Fußballvereine und regionales Image]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 39(1), pages 1-23, February.
    14. Dennis Coates & Brad R. Humphreys, 2003. "Professional Sports Facilities, Franchises and Urban Economic Development," UMBC Economics Department Working Papers 03-103, UMBC Department of Economics.
    15. Hyunwoong Pyun & Joshua C. Hall, 2019. "Does the presence of professional football cause crime in a city? Evidence from Pontiac, Michigan," Applied Economics, Taylor & Francis Journals, vol. 51(36), pages 3958-3970, August.
    16. Pamela Wicker & John C. Whitehead & Bruce K. Johnson & Daniel S. Mason, 2017. "The effect of sporting success and management failure on attendance demand in the Bundesliga: a revealed and stated preference travel cost approach," Applied Economics, Taylor & Francis Journals, vol. 49(52), pages 5287-5295, November.
    17. Barajas, Ángel & Salgado, Jesyca & Sánchez, Patricio, 2012. "Problemática de los estudios de impacto económico de eventos deportivos /Problems to face in the Economic Impact of Sports Events Studies," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 441-462, Agosto.
    18. Humphreys, Brad & Zhou, Li, 2014. "Loss Aversion, Team Relocations, and Major League Expansion," Working Papers 2014-3, University of Alberta, Department of Economics.
    19. Bruce K. Johnson & Michael J. Mondello & John C. Whitehead, 2005. "What is the Value of Public Goods Generated by a National Football League Team: A CVM Approach," Working Papers 05-10, Department of Economics, Appalachian State University.
    20. Kim, Woosoon & Walker, Matthew, 2012. "Measuring the social impacts associated with Super Bowl XLIII: Preliminary development of a psychic income scale," Sport Management Review, Elsevier, vol. 15(1), pages 91-108.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:apl:wpaper:12-01. 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: . General contact details of provider: https://edirc.repec.org/data/deappus.html .

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: O. Ashton Morgan (email available below). General contact details of provider: https://edirc.repec.org/data/deappus.html .

    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.