Luis E. Santiago, University of Puerto RicoJohn Loomis, Colorado State University

Hydrology Days 2008Colorado State University

Fort Collins, ColoradoThis research was funded by NSF

Biocomplexity Project studying coupled natural and Human systems Grant #

0308414

Need for Study

Natural Resource Managers often need to know: Value of Protecting Natural Features

such as Waterfalls from hydropower development

Added value of providing visitor access to Natural Features such as Waterfalls as road construction to waterfall areas can be expensive

Added value of providing trails at recreation areas, as trail construction & maintenance is also expensive

Purpose of Study

To provide economic valuation information on incremental value of recreation with waterfalls and trails

Illustrate how the Contingent Valuation Method can be applied to not only provide: An overall value of current recreation How that value changes with presence of

waterfalls and construction of hiking trails

WTPit = (A1i, . . . , Ani, D1i , . . . , Dni )

WTPit = net benefits (willingness to pay) from recreation experience

A1i, . . . , Ani = built and natural site attributes such as scenic views, the presence of waterfalls, availability of parking spots and the presence of foot trails

D1i, D2i , . . . , Dni = demographic characteristics of the visitor, including gender, age, level of education, and annual income

i = individual respondent to survey t = date

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Data Collection Mode In-person interviews at recreation site while

visitors were recreating The interviewers were trained graduate and

undergraduate students who closely followed a script.

Sample size 1,126 questionnaires 99% response rate

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Information Component of Survey Instrument Item to be valued: recreation site Payment vehicle: recreation trip cost Time frame of payment: PER TRIP

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Contingent Valuation Question Response format: Dichotomous-choice Question: As you know the price of gasoline often

goes up. Taking into consideration that there are other rivers as well as beaches nearby where you could go visit, if the cost of this visit to this river was $____ more than what you have already spent, would you still have come today? ____ Yes

____ No The bid amount randomly presented to

respondents began at $5, and ranged up to $160. 35 respondents evaluated each bid amount.

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River  Espiritu Santo Fajardo Mameyes

Number of Observations 164 235 593

Natural and Built Site Variables

Average Temperature (in ºF) 92.7 87.6 84.5

Presence of Waterfalls   3 of 5 sites 2 of 5 sites 2 of 7 sites

Presence of Scenic Views   3 of 5 sites 3 of 5 sites 5 of 7 sites

Presence of Formal Trails   1 of 5 sites 0 of 5 sites 2 of 7 sites

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Probability (YES) = 1 - {1 + exp[β0 - β1(X) + βA (A) + βD (D)]}

Where: β0 = the intercept. β1 = the coefficient on the bid variable, X = the given bid amount, βA = the coefficient on the built and natural

site attributes (An), and βD = the coefficient on the demographic

variables (Dn).

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Variable Coefficient z-Statistic Prob. Constant 1.1375 5.572 0.0000BID ($) -0.0094 -13.59 0.0000

WATERFALL 0.2126 2.1485 0.0317FOOT TRAILS 0.1774 1.6924 0.0906EDUCATION -0.0234 -1.6865 0.0917

GENDER 0.1775 2.154 0.0312

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WTP Equation for Natural Features derived from Logit

Coefficients

Constant WFALL FTRAILS EDUC GENDER$119.95 $23.07 $19.24 -$2.49 $19.69

The median net economic value of a visit to the two rivers without waterfalls or foot trails is $96.

Recreation at rivers with both waterfalls and foot trails has a median value of $138 per trip.

The presence of waterfalls accounts for $23 and foot trails $19 per trip.

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This information can be pertinent for managers Selecting recreation site locations. Protecting sites from competing uses, such as

locations with sufficient gradient for waterfalls, also coveted by others for hydropower development.

Improving existing site facilities Only 3 of 17 sites have formal trails. Some sites, especially outside the CNF, don’t

have adequate parking, picnic areas , regular trash collection.

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