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What price recreation in Finland? – A contingent valuation study of non-market benefits of public outdoor recreation areas

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  • Huhtala, Anni

Abstract

Basic services in Finnish national parks and state-owned recreation areas have traditionally been publicly financed and thus free of charge for users. Since the benefits of public recreation are not captured by market demand, government spending on recreation services must be motivated in some other way. Here, we elicit people’s willingness to pay (WTP) for services in the country’s state-owned parks to obtain an estimate of the value of outdoor recreation in monetary terms. A variant of the Tobit model is used in the econometric analysis to examine the WTP responses elicited by a payment card format. We also study who the current users of recreation services are in order to enable policymakers to anticipate the redistribution effects of a potential implementation of user fees. Finally, we discuss the motives for WTP, which reveal concerns such as equity and ability to pay that are relevant for planning public recreation in general and for the introduction of fees in particular.

Suggested Citation

  • Huhtala, Anni, 2004. "What price recreation in Finland? – A contingent valuation study of non-market benefits of public outdoor recreation areas," MPRA Paper 24602, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:24602
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    File URL: https://mpra.ub.uni-muenchen.de/24602/1/MPRA_paper_24602.pdf
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    References listed on IDEAS

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    1. R. M. Adams & O. Bergland & W. N. Musser & S. L. Johnson & L. M. Musser, 1989. "User Fees and Equity Issues in Public Hunting Expenditures: The Case of Ring-Necked Pheasant in Oregon," Land Economics, University of Wisconsin Press, vol. 65(4), pages 376-385.
    2. Trudy Ann Cameron & Daniel D. Huppert, 1987. "Non-Market Resource Valuation: Assessment of Value Elicitation By "Payment Card" Versus "Referendum" Methods," UCLA Economics Working Papers 448, UCLA Department of Economics.
    3. Elizabeth A. Wilman, 1988. "Pricing Policies for Outdoor Recreation," Land Economics, University of Wisconsin Press, vol. 64(3), pages 234-241.
    4. Johansson,Per-Olov, 1987. "The Economic Theory and Measurement of Environmental Benefits," Cambridge Books, Cambridge University Press, number 9780521348102.
    5. McConnell, Kenneth E., 1985. "The economics of outdoor recreation," Handbook of Natural Resource and Energy Economics,in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 15, pages 677-722 Elsevier.
    6. Herriges, Joseph A. & Kling, Catherine L., 1999. "Valuing Recreation and the Environment: Revealed Preference Methods in Theory and Practice, New Horizons in Environmental Economics," Staff General Research Papers Archive 12330, Iowa State University, Department of Economics.
    7. Cameron, Trudy Ann & Huppert, Daniel D., 1989. "OLS versus ML estimation of non-market resource values with payment card interval data," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 230-246, November.
    8. Fredric C. Menz & John K. Mullen, 1981. "Expected Encounters and Willingness to Pay for Outdoor Recreation," Land Economics, University of Wisconsin Press, vol. 57(1), pages 33-40.
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    Citations

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    Cited by:

    1. Huhtala, Anni & Pouta, Eija, 2008. "User fees, equity and the benefits of public outdoor recreation services," Journal of Forest Economics, Elsevier, vol. 14(2), pages 117-132, April.
    2. Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
    3. Louinord Voltaire & Abdelhak Nassiri & Denis Bailly & Jean Boncoeur, 2011. "Effet d’une taxe et d’un droit d’entrée sur les consentements à payer des touristes pour de nouvelles réserves naturelles dans le golfe du Morbihan," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(2), pages 183-209.
    4. Pamela Wicker & John C. Whitehead & Daniel S. Mason & Bruce K. Johnson, 2015. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Working Papers 15-06, Department of Economics, Appalachian State University.
    5. Juutinen, Artti & Kosenius, Anna-Kaisa & Ovaskainen, Ville, 2014. "Estimating the benefits of recreation-oriented management in state-owned commercial forests in Finland: A choice experiment," Journal of Forest Economics, Elsevier, vol. 20(4), pages 396-412.
    6. Huhtala, Anni & Pouta, Eija, 2006. "Discerning welfare impacts of public provision of recreation areas," Discussion Papers 11860, MTT Agrifood Research Finland.

    More about this item

    Keywords

    non-market valuation; payment card; recreation; recreation fees; taxes; user fees; wllingnes-to-pay; WTP;

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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