Comparing the Consumer Surplus for Recreational Value by Using a Contingent Valuation Method and Travel Cost Method

Document Type : Research Paper

Author

Assistant Professor of Natural Resources Economics, National Oceanic and Atmospheric Research Center

Abstract

The purpose of this research is comparing the Contingent Valuation Method (CVM) with the Zonal Travel Cost Method (ZTCM) in case of estimating of recreational value of coral reefs in Iran.
The semi-nonparametric distribution-free (SNPDF) model was employed to estimate the visitor’s willingness to pay. Face to face questionnaires have been applied to measure visitor's willingness to pay. The recurrence of traveling to this island is not high per person so we couldn’t use of individual travel cost method therefore we have applied the zonal travel cost method instead.
The findings indicate that consumer surplus according to the contingent valuation method is about $7M and the estimation from the travel cost method is about $14M, which is two times greater than the first method. It should be considered that if the site is not single purpose, applying the travel cost method leads to an overestimation.

Keywords

References

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