Title: Empirical evidence for large nonmarket values for water resources: TCM benefits estimates for Lake Powell

Authors: Aaron J. Douglas, Richard L. Johnson

Addresses: US Geological Survey, Biological Resources Division, Midcontinent Ecological Science Center, 4512 McMurry Avenue, Fort Collins, CO 80525 3400, USA. ' US Geological Survey, Biological Resources Division, Midcontinent Ecological Science Center, 4512 McMurry Avenue, Fort Collins, CO 80525 3400, USA

Abstract: The wide acceptance of travel cost method (TCM) nonmarket benefits estimates rests, in part, on the fact that it deploys data on actual expenditures – as opposed to hypothetical behaviour – to estimate benefits conferred. The data for the current analysis was gathered from a survey that was distributed on-site at Lake Powell in 1997. The Lake Powell survey data indicates that aggregate recreation expenditures for Lake Powell trips were a remarkable $291 million in 1997. Hence, TCM benefits estimates for Lake Powell are also notably high. We explore several policy and management implications of our estimates including the light these high values shed on recent large and highly controversial CVM benefits estimates at water based sites.

Keywords: contingent valuation; nonmarket benefits; statistical reliability; travel cost method; recreation expenditure; water resources.

DOI: 10.1504/IJW.2004.005524

International Journal of Water, 2004 Vol.2 No.4, pp.229 - 246

Published online: 12 Oct 2004 *

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