Pub Date : 2022-05-11DOI: 10.1080/21606544.2022.2071344
N. Schneider
ABSTRACT With the acceleration of environmental commitments, the Green Paradox has been taking centre stage in the climate debate. In the standard Hotelling (1936) framework, producers may interpret environmental regulations as direct threats to resource scarcity rents. They compensate the future losses of revenues by forward shifting the extraction decision to the present period. In this paper, we defend the intuition behind which the anticipation effects of fossil producers are non-negligible and cannot be ignored by environmental planners. However, facing the conflicting evidence and theoretical underpinnings arising from the most recent literature, we argue that their effective impacts on climate targets tend to be over-estimated and might become smaller under reasonable assumptions and identified conditions. Accordingly, a set of recommendations are provided to internalize such inferences within upcoming climate measures.
{"title":"Climate policy, resource owners’ anticipations and the green paradox: model set-up and empirical considerations","authors":"N. Schneider","doi":"10.1080/21606544.2022.2071344","DOIUrl":"https://doi.org/10.1080/21606544.2022.2071344","url":null,"abstract":"ABSTRACT\u0000 With the acceleration of environmental commitments, the Green Paradox has been taking centre stage in the climate debate. In the standard Hotelling (1936) framework, producers may interpret environmental regulations as direct threats to resource scarcity rents. They compensate the future losses of revenues by forward shifting the extraction decision to the present period. In this paper, we defend the intuition behind which the anticipation effects of fossil producers are non-negligible and cannot be ignored by environmental planners. However, facing the conflicting evidence and theoretical underpinnings arising from the most recent literature, we argue that their effective impacts on climate targets tend to be over-estimated and might become smaller under reasonable assumptions and identified conditions. Accordingly, a set of recommendations are provided to internalize such inferences within upcoming climate measures.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2022-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43459309","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-03DOI: 10.1080/21606544.2022.2065364
Salpage Nesha Dushani, M. Aanesen, C. Armstrong
ABSTRACT This study investigates tourist preferences and willingness to pay (WTP) for restoration of mangroves to reduce the effects of climate change (CC) on ecotourism at Rekawa coastal wetland, Sri Lanka, using a double bounded discrete choice elicitation format in a contingent valuation method. The survey also included socio-economic, demographic, and attitudinal characteristics of respondents. The results reveal that domestic and foreign tourists on average were willing to pay 2.65 USD and 11.4 USD per person, respectively, for mangrove restoration in Rekawa wetland. Among socio-demographic variables, education, age, and occupation had a significant effect on WTP. Furthermore, we show that foreign respondents with greater trust in the role of mangroves in mitigating the impacts of CC on sea turtles, and domestic tourists who believed effects of mangrove restoration in reducing the future vulnerability of urban expansion, were willing to pay more for the proposed mangrove restoration fund. Based on tourists’ preferences and WTP for mangrove protection, our results support the establishment of an environmental protection fund from the collection of tourists’ entrance fees using a dual pricing strategy, and the use of the funds for planting mangroves, patrolling mangrove areas to prevent illegal activities, and promoting nature-based tourism activities.
{"title":"Willingness to pay for mangrove restoration to reduce the climate change impacts on ecotourism in Rekawa coastal wetland, Sri Lanka","authors":"Salpage Nesha Dushani, M. Aanesen, C. Armstrong","doi":"10.1080/21606544.2022.2065364","DOIUrl":"https://doi.org/10.1080/21606544.2022.2065364","url":null,"abstract":"ABSTRACT This study investigates tourist preferences and willingness to pay (WTP) for restoration of mangroves to reduce the effects of climate change (CC) on ecotourism at Rekawa coastal wetland, Sri Lanka, using a double bounded discrete choice elicitation format in a contingent valuation method. The survey also included socio-economic, demographic, and attitudinal characteristics of respondents. The results reveal that domestic and foreign tourists on average were willing to pay 2.65 USD and 11.4 USD per person, respectively, for mangrove restoration in Rekawa wetland. Among socio-demographic variables, education, age, and occupation had a significant effect on WTP. Furthermore, we show that foreign respondents with greater trust in the role of mangroves in mitigating the impacts of CC on sea turtles, and domestic tourists who believed effects of mangrove restoration in reducing the future vulnerability of urban expansion, were willing to pay more for the proposed mangrove restoration fund. Based on tourists’ preferences and WTP for mangrove protection, our results support the establishment of an environmental protection fund from the collection of tourists’ entrance fees using a dual pricing strategy, and the use of the funds for planting mangroves, patrolling mangrove areas to prevent illegal activities, and promoting nature-based tourism activities.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2022-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49240738","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-15DOI: 10.1080/21606544.2022.2059015
J. Bayham, J. Burkhardt, Makena Coffman, Sherilyn Hayashida, S. La Croix
ABSTRACT We estimate a model of electric vehicle (EV) adoption in 427 of the largest metropolitan areas in the 48 contiguous U.S. states. We observe all new battery electric vehicles (BEV) and plug-in electric vehicles (PHEV) registrations by metro area over the 2011–2018 period, and we investigate whether adoption of new EVs is statistically related to multiple types of air pollution – long-term air pollution as measured by ambient PM2.5 and temporary pollution events as measured by the presence of wildfire smoke plumes in either the lower or upper atmosphere. Regression results show that both ambient PM2.5 and smoke plumes are related to BEV and PHEV adoptions by metro area.
{"title":"Does air pollution increase electric vehicle adoption? Evidence from U.S. metropolitan areas, 2011–2018","authors":"J. Bayham, J. Burkhardt, Makena Coffman, Sherilyn Hayashida, S. La Croix","doi":"10.1080/21606544.2022.2059015","DOIUrl":"https://doi.org/10.1080/21606544.2022.2059015","url":null,"abstract":"ABSTRACT We estimate a model of electric vehicle (EV) adoption in 427 of the largest metropolitan areas in the 48 contiguous U.S. states. We observe all new battery electric vehicles (BEV) and plug-in electric vehicles (PHEV) registrations by metro area over the 2011–2018 period, and we investigate whether adoption of new EVs is statistically related to multiple types of air pollution – long-term air pollution as measured by ambient PM2.5 and temporary pollution events as measured by the presence of wildfire smoke plumes in either the lower or upper atmosphere. Regression results show that both ambient PM2.5 and smoke plumes are related to BEV and PHEV adoptions by metro area.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2022-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42052060","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-23DOI: 10.1080/21606544.2022.2049372
Serhan Cevik
ABSTRACT Global warming is the most significant threat to ecosystems and people’s health and living standards in the coming decades, especially in small island states in the Caribbean and elsewhere. This paper contributes to the debate by analyzing different options to scale up climate change mitigation and adaptation. In particular, the empirical analysis indicates that increasing energy efficiency and reducing the use of fossil fuel in electricity generation could lead to a significant reduction in carbon emissions, while investing in physical and financial resilience would yield long-run benefits. From a risk-reward perspective, the advantages of reducing the risks associated with climate change and the health benefits from higher environmental quality clearly outweigh the potential cost of climate change mitigation and adaptation in the short run. The additional revenue generated by environmental taxes could be used to compensate the most vulnerable households, building a multilayered safety net, and strengthening structural resilience.
{"title":"Waiting for Godot? The case for climate change adaptation and mitigation in small island states","authors":"Serhan Cevik","doi":"10.1080/21606544.2022.2049372","DOIUrl":"https://doi.org/10.1080/21606544.2022.2049372","url":null,"abstract":"ABSTRACT Global warming is the most significant threat to ecosystems and people’s health and living standards in the coming decades, especially in small island states in the Caribbean and elsewhere. This paper contributes to the debate by analyzing different options to scale up climate change mitigation and adaptation. In particular, the empirical analysis indicates that increasing energy efficiency and reducing the use of fossil fuel in electricity generation could lead to a significant reduction in carbon emissions, while investing in physical and financial resilience would yield long-run benefits. From a risk-reward perspective, the advantages of reducing the risks associated with climate change and the health benefits from higher environmental quality clearly outweigh the potential cost of climate change mitigation and adaptation in the short run. The additional revenue generated by environmental taxes could be used to compensate the most vulnerable households, building a multilayered safety net, and strengthening structural resilience.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2022-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42080246","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-06DOI: 10.1080/21606544.2022.2043188
Heini Ahtiainen, Tuija Lankia, Jussi Lehtonen, Olli Lehtonen, Christine Bertram, J. Meyerhoff, Kristīne Pakalniete, K. Rehdanz, E. Pouta
ABSTRACT Omission of substitute sites in travel cost analysis can cause an overestimation of recreational benefits. Only few analyses have included substitutes, partly because of the difficulty in defining an appropriate set of substitutes. We examine factors affecting the existence of substitutes and their impact on the demand and value of coastal recreation using spatially-referenced survey data from Finland, Germany and Latvia on recreational visits to the Baltic Sea, which can be characterized as a unique destination. Substitutes are defined by respondents themselves. Our findings indicate that the existence and effects of substitute sites differ across countries. Many respondents have no substitutes for Baltic Sea recreation, in particular in Latvia. Respondent and visit-specific factors explain the probability of having substitutes. Substitutes reduce the demand for coastal recreation in Finland and Germany but increase it in Latvia. Further, respondents having substitutes are less sensitive to travel costs in Germany and more sensitive in Finland and Latvia. The annual welfare from Baltic Sea recreation is lower for people who have substitutes in Finland and Germany, and higher in Latvia. The findings suggest that uniform assumptions about the existence and effects of substitutes appear unwarranted, especially for sites of unique or iconic nature.
{"title":"Welfare effect of substitute sites for coastal recreation – evidence from the Baltic Sea","authors":"Heini Ahtiainen, Tuija Lankia, Jussi Lehtonen, Olli Lehtonen, Christine Bertram, J. Meyerhoff, Kristīne Pakalniete, K. Rehdanz, E. Pouta","doi":"10.1080/21606544.2022.2043188","DOIUrl":"https://doi.org/10.1080/21606544.2022.2043188","url":null,"abstract":"ABSTRACT Omission of substitute sites in travel cost analysis can cause an overestimation of recreational benefits. Only few analyses have included substitutes, partly because of the difficulty in defining an appropriate set of substitutes. We examine factors affecting the existence of substitutes and their impact on the demand and value of coastal recreation using spatially-referenced survey data from Finland, Germany and Latvia on recreational visits to the Baltic Sea, which can be characterized as a unique destination. Substitutes are defined by respondents themselves. Our findings indicate that the existence and effects of substitute sites differ across countries. Many respondents have no substitutes for Baltic Sea recreation, in particular in Latvia. Respondent and visit-specific factors explain the probability of having substitutes. Substitutes reduce the demand for coastal recreation in Finland and Germany but increase it in Latvia. Further, respondents having substitutes are less sensitive to travel costs in Germany and more sensitive in Finland and Latvia. The annual welfare from Baltic Sea recreation is lower for people who have substitutes in Finland and Germany, and higher in Latvia. The findings suggest that uniform assumptions about the existence and effects of substitutes appear unwarranted, especially for sites of unique or iconic nature.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2022-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46508922","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-06DOI: 10.1080/21606544.2022.2044391
S. Shrivastava, Kakali Mukhopadhyay
ABSTRACT Protected Areas, the mainstay of biodiversity conservation, are facing an unprecedented threat of being exploited, making their conservation not only crucial but also urgent. As the looming threat does not leave scope for expensive and time-consuming surveys, this paper intends to add to the existing literature and to the cause of biodiversity conservation by undertaking the first ever multinational Meta-Analysis of National Park (NP) valuation studies in South and South East Asia. The relative importance of study-, site-, and socioeconomic characteristics is estimated through a meta-regression and suggestions for redesigning pricing strategies to capture the unrealized consumer surplus are presented. Key results highlight the importance of the place of residence, area of the NP, and GDP per capita in explaining variation in NP value. Furthermore, taking note of the havoc wreaked by the COVID-19 pandemic, the study highlights the need to diversify the funding base for NP management in order to ensure sustainable financing by presenting country-specific examples.
{"title":"Valuation and financing of National Parks in South and South East Asia: a meta-analysis","authors":"S. Shrivastava, Kakali Mukhopadhyay","doi":"10.1080/21606544.2022.2044391","DOIUrl":"https://doi.org/10.1080/21606544.2022.2044391","url":null,"abstract":"ABSTRACT Protected Areas, the mainstay of biodiversity conservation, are facing an unprecedented threat of being exploited, making their conservation not only crucial but also urgent. As the looming threat does not leave scope for expensive and time-consuming surveys, this paper intends to add to the existing literature and to the cause of biodiversity conservation by undertaking the first ever multinational Meta-Analysis of National Park (NP) valuation studies in South and South East Asia. The relative importance of study-, site-, and socioeconomic characteristics is estimated through a meta-regression and suggestions for redesigning pricing strategies to capture the unrealized consumer surplus are presented. Key results highlight the importance of the place of residence, area of the NP, and GDP per capita in explaining variation in NP value. Furthermore, taking note of the havoc wreaked by the COVID-19 pandemic, the study highlights the need to diversify the funding base for NP management in order to ensure sustainable financing by presenting country-specific examples.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2022-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49362418","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-24DOI: 10.1080/21606544.2021.2024094
D. Gelo, J. Turpie
ABSTRACT Water quality amelioration is one of the key ecosystem services provided by forests in the catchment areas of water supply systems. In this study, we applied random effect models and the least absolute shrinkage and selection regression method of machine learning to South African panel data to estimate the causal effect of natural forest cover on municipalities' water treatment cost. We controlled for a range of confounding covariates including other land cover variables including wetlands, plantation forests, grassland, woodland etc. The Lasso based instrumental variable (IV) method allowed us to simultaneously account for model uncertainty surrounding variable selection and endogeneity bias. We found significant and robust evidence that natural forestland cover reduces water treatment costs at the intensive margin. Estimates from our preferred models indicated that the marginal benefit of increasing forest cover is R310.63 /ha/year. We also found that the elasticity response of water treatment cost to natural forest area is 0.02%. Our estimate of the marginal value of the water purification service is small compared to the producer's surplus from alternative land uses. However, protection of natural forest land use might be defended if other ecosystem goods and services provided by natural forests are taken into account.
{"title":"The effect of forest land use on the cost of drinking water supply: machine learning evidence from South African data","authors":"D. Gelo, J. Turpie","doi":"10.1080/21606544.2021.2024094","DOIUrl":"https://doi.org/10.1080/21606544.2021.2024094","url":null,"abstract":"ABSTRACT Water quality amelioration is one of the key ecosystem services provided by forests in the catchment areas of water supply systems. In this study, we applied random effect models and the least absolute shrinkage and selection regression method of machine learning to South African panel data to estimate the causal effect of natural forest cover on municipalities' water treatment cost. We controlled for a range of confounding covariates including other land cover variables including wetlands, plantation forests, grassland, woodland etc. The Lasso based instrumental variable (IV) method allowed us to simultaneously account for model uncertainty surrounding variable selection and endogeneity bias. We found significant and robust evidence that natural forestland cover reduces water treatment costs at the intensive margin. Estimates from our preferred models indicated that the marginal benefit of increasing forest cover is R310.63 /ha/year. We also found that the elasticity response of water treatment cost to natural forest area is 0.02%. Our estimate of the marginal value of the water purification service is small compared to the producer's surplus from alternative land uses. However, protection of natural forest land use might be defended if other ecosystem goods and services provided by natural forests are taken into account.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2022-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41281294","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-02DOI: 10.1080/21606544.2022.2025910
P. Metcalfe
ABSTRACT At the most recent water price review in England and Wales, PR19, water companies were encouraged more than ever before by the economic regulator, Ofwat, to expand the evidence based on the value of potential improvements to water and wastewater services, and to consider new and innovative methods for doing so. The present special issue was motivated by the opportunity to take stock of the developments and invite scrutiny from a wider academic and policy audience, thereby hopefully stimulating further innovation and advancement of the techniques used. It contains six papers, including a history of willingness to pay research in the UK water sector, a meta-analysis of UK water and wastewater service valuations and four novel valuation studies conducted for PR19.
{"title":"Valuing water and wastewater services in the UK: introduction to the special issue","authors":"P. Metcalfe","doi":"10.1080/21606544.2022.2025910","DOIUrl":"https://doi.org/10.1080/21606544.2022.2025910","url":null,"abstract":"ABSTRACT At the most recent water price review in England and Wales, PR19, water companies were encouraged more than ever before by the economic regulator, Ofwat, to expand the evidence based on the value of potential improvements to water and wastewater services, and to consider new and innovative methods for doing so. The present special issue was motivated by the opportunity to take stock of the developments and invite scrutiny from a wider academic and policy audience, thereby hopefully stimulating further innovation and advancement of the techniques used. It contains six papers, including a history of willingness to pay research in the UK water sector, a meta-analysis of UK water and wastewater service valuations and four novel valuation studies conducted for PR19.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2022-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48977210","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-02DOI: 10.1080/21606544.2021.2023052
A. Chalak, P. Metcalfe
ABSTRACT Stated preference valuations of water and wastewater service improvements in Great Britain have been found to be highly variable across studies for similar units of service, driven primarily by a substantive dependence on the scope of service change offered to survey participants. The present paper motivates and describes a new approach that is simpler for survey participants and sidesteps the key problems caused by scope insensitivity. It relies on first deriving estimates of the relative impact of different types of service issue, and then using these to apportion a package valuation into valuations of individual service level improvements. The paper presents a case study that implements the new approach in a real business planning context and discusses the impact the new approach has on the valuation results obtained. We contend that the new approach has significant advantages over traditional discrete choice experiment approaches to water and wastewater service valuation and recommend it for future use in similar policy/planning contexts.
{"title":"Valuing water and wastewater service improvements via impact-weighted numbers of service failures","authors":"A. Chalak, P. Metcalfe","doi":"10.1080/21606544.2021.2023052","DOIUrl":"https://doi.org/10.1080/21606544.2021.2023052","url":null,"abstract":"ABSTRACT Stated preference valuations of water and wastewater service improvements in Great Britain have been found to be highly variable across studies for similar units of service, driven primarily by a substantive dependence on the scope of service change offered to survey participants. The present paper motivates and describes a new approach that is simpler for survey participants and sidesteps the key problems caused by scope insensitivity. It relies on first deriving estimates of the relative impact of different types of service issue, and then using these to apportion a package valuation into valuations of individual service level improvements. The paper presents a case study that implements the new approach in a real business planning context and discusses the impact the new approach has on the valuation results obtained. We contend that the new approach has significant advantages over traditional discrete choice experiment approaches to water and wastewater service valuation and recommend it for future use in similar policy/planning contexts.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2022-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47327768","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-28DOI: 10.1080/21606544.2021.2010604
Samson Mukanjari, Herbert Ntuli, E. Muchapondwa
ABSTRACT The increasing pressure within developing countries to focus on other national objectives has led to declining fiscal transfers for conservation. This paper assesses the potential for a typical large African park such as the Kruger National Park to generate additional revenue through an entrance fee hike in order to finance park operations. This is investigated by estimating international tourists’ willingness to pay (WTP) for possible future visits. The estimated WTP is substantial, ranging from $216 to $255 per trip and $79 million to $94 million per year for all international tourists. Using a non-parametric survival function to calculate the consumer surplus that could be extracted from tourists, we show that park authorities can increase total revenue by 57% to 61% ($38 million and $40 million) per year. These findings indicate that unique African parks such as the Kruger National Park can contribute to African economies through revenues from increased entrance fees.
{"title":"Valuation of nature-based tourism using contingent valuation survey: evidence from South Africa","authors":"Samson Mukanjari, Herbert Ntuli, E. Muchapondwa","doi":"10.1080/21606544.2021.2010604","DOIUrl":"https://doi.org/10.1080/21606544.2021.2010604","url":null,"abstract":"ABSTRACT The increasing pressure within developing countries to focus on other national objectives has led to declining fiscal transfers for conservation. This paper assesses the potential for a typical large African park such as the Kruger National Park to generate additional revenue through an entrance fee hike in order to finance park operations. This is investigated by estimating international tourists’ willingness to pay (WTP) for possible future visits. The estimated WTP is substantial, ranging from $216 to $255 per trip and $79 million to $94 million per year for all international tourists. Using a non-parametric survival function to calculate the consumer surplus that could be extracted from tourists, we show that park authorities can increase total revenue by 57% to 61% ($38 million and $40 million) per year. These findings indicate that unique African parks such as the Kruger National Park can contribute to African economies through revenues from increased entrance fees.","PeriodicalId":44903,"journal":{"name":"Journal of Environmental Economics and Policy","volume":null,"pages":null},"PeriodicalIF":2.6,"publicationDate":"2021-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48278481","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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