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A valuation of recreational benefits.
Authors: A. S. EverittPublication: New Zealand Journal of Forestry, Volume N.Z.J.For. 1983, Issue N.Z.J.For. 28(2) 1983, pp 176-183, Aug 1983
Publisher: New Zealand Institute of Forestry
Abstract: This paper attempts to find a minimum value for the re-creational benefits of the Kauaeranga Valley, Coromandel State Forest Park.
The method used is a variant of the "travel cost method", which was initially developed in the 1950s by M. Clawson. It involved collecting data on distances travelled by visitors, and their socio-economic characteristics. A questionnaire survey was used for this purpose. Demand curves for the "whole recreational experience" are derived using several different values for "price". These include upper and lower estimates of the variable cost of travel, and an estimate of the variable cost of travel time. A demand curve for the site is derived from each "whole experience" demand curve using cross-sectional analysis. The measure of annual return used is total surplus which is equal to the area under the demand curve.
The minimum value derived for the recreational return is $100 000/yr (1981 3rd quarter terms). Assuming this minimum return to remain constant for at least 20 years, the Valley's minimum value as a recreational resource is $1 million at a discount rate of 10%