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

Author

Listed:
  • 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

    as
    1. Trudy Ann Cameron, 1991. "Interval Estimates of Non-Market Resource Values from Referendum Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 67(4), pages 413-421.
    2. A. Caparros & P. Campos & G. Montero, 2003. "An operative framework for total hicksian income measurement - Application to a multiple-use forest," Post-Print hal-00719124, HAL.
    3. Alberini, Anna & Boyle, Kevin & Welsh, Michael, 2003. "Analysis of contingent valuation data with multiple bids and response options allowing respondents to express uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 40-62, January.
    4. Cairns, Robert D., 2008. "Value and income," Ecological Economics, Elsevier, vol. 66(2-3), pages 417-424, June.
    5. Joseph Cooper & John Loomis, 1992. "Sensitivity of Willingness-to-Pay Estimates to Bid Design in Dichotomous Choice Contingent Valuation Models," Land Economics, University of Wisconsin Press, vol. 68(2), pages 211-224.
    6. Alejandro Caparrós & Pablo Campos & Gregorio Montero, 2003. "An Operative Framework for Total Hicksian Income Measurement: Application to a Multiple-Use Forest," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(2), pages 173-198, October.
    7. William S. Breffle & Robert D. Rowe, 2002. "Comparing Choice Question Formats for Evaluating Natural Resource Tradeoffs," Land Economics, University of Wisconsin Press, vol. 78(2), pages 298-314.
    8. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    9. Welsh, Michael P. & Poe, Gregory L., 1998. "Elicitation Effects in Contingent Valuation: Comparisons to a Multiple Bounded Discrete Choice Approach," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 170-185, September.
    10. Loomis, John B., 2005. "Economic Values without Prices: The Importance of Nonmarket Values and Valuation for Informing Public Policy Debates," Choices, Agricultural and Applied Economics Association, vol. 20(3).
    11. Robert Cairns, 2003. "Reconciling the Green Accounts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(1), pages 51-63, May.
    12. Richard C. Bishop, 1978. "Endangered Species and Uncertainty: The Economics of a Safe Minimum Standard," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(1), pages 10-18.
    13. Pablo Campos & Francois Bonnieux & Alejandro Caparros & Jean-Christophe Paoli, 2007. "Measuring total sustainable incomes from multifunctional management of Corsican Maritime Pine and Andalusian Cork oak Mediterranean forests," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 50(1), pages 65-85.
    14. Matero, Jukka & Saastamoinen, Olli, 2007. "In search of marginal environmental valuations -- ecosystem services in Finnish forest accounting," Ecological Economics, Elsevier, vol. 61(1), pages 101-114, February.
    15. Oviedo Pro, Jose Luis & Cparros Gass, Alejandro & Campos Palacin, Pablo, 2005. "Valoracion contingente del uso recreativo y de conservacion de los vistantes del Parque Natural los Alcornocales," Revista Española de Estudios Agrosociales y Pesqueros, Ministerio de Medio Ambiente, Rural y Marino (formerly Ministry of Agriculture), issue 208.
    16. Richard C. Bishop & Thomas A. Heberlein, 1979. "Measuring Values of Extramarket Goods: Are Indirect Measures Biased?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 926-930.
    17. Campos, Pablo & Caparros, Alejandro, 2006. "Social and private total Hicksian incomes of multiple use forests in Spain," Ecological Economics, Elsevier, vol. 57(4), pages 545-557, June.
    18. Boyle Kevin J. & Welsh Michael P. & Bishop Richard C., 1993. "The Role of Question Order and Respondent Experience in Contingent-Valuation Studies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 80-99, July.
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    Cited by:

    1. 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.

    More about this item

    Keywords

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

    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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