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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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  • Dikgang, Johane
  • Muchapondwa, Edwin

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 behaviour 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.

Suggested Citation

  • Dikgang, Johane & Muchapondwa, Edwin, 2013. "Conservation Fees in the Kgalagadi Transfrontier Park between Botswana and South Africa in the Presence of Land Restitution," Discussion Papers dp-13-09-efd, Resources For the Future.
  • Handle: RePEc:rff:dpaper:dp-13-09-efd
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    References listed on IDEAS

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    1. Scarpa, Riccardo & Chilton, Susan M. & Hutchinson, W. George & Buongiorno, Joseph, 2000. "Valuing the recreational benefits from the creation of nature reserves in Irish forests," Ecological Economics, Elsevier, pages 237-250.
    2. Bergstrom, Theodore C & Rubinfeld, Daniel L & Shapiro, Perry, 1982. "Micro-Based Estimates of Demand Functions for Local School Expenditures," Econometrica, Econometric Society, vol. 50(5), pages 1183-1205, September.
    3. Johane Dikgang & Edwin Muchapondwa, 2016. "The Effect of Land Restitution on Poverty Reduction among the Khomani San “Bushmen” in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 84(1), pages 63-80, March.
    4. 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 2003/08, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    5. Alpizar, Francisco, 2006. "The pricing of protected areas in nature-based tourism: A local perspective," Ecological Economics, Elsevier, vol. 56(2), pages 294-307, February.
    6. Andre Bonfrer & Ernst R. Berndt & Alvin Silk, 2006. "Anomalies in Estimates of Cross-Price Elasticities for Marketing Mix Models: Theory and Empirical Test," NBER Working Papers 12756, National Bureau of Economic Research, Inc.
    7. 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;The Association for Cultural Economics International, vol. 30(4), pages 287-304, December.
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    Keywords

    contingent behaviour; conservation fee; demand; land claim; national park;

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