Economic Impacts of Parks, Rivers, Trails and Greenways

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3.7 Benefit EstimationParks, rivers, trails, and greenways provide many benefits which do not have establishedmarket values and are difficult to price and express in monetary terms. This sectionintroduces techniques of economic analysis which attempt to quantify these non-marketvalues to ensure a more complete measure of total benefits associated with rivers, trails, andgreenways.The first subsections present methods used to estimate the benefits of recreation. Alsoincluded, is a discussion of how people may value park, river, trail, and greenwayresources, even when they may not visit these areas. Benefit cost analysis is also introducedas an economic technique which may be helpful for some river and greenway projects.3.7.1 Introduction to Benefit EstimationTotal recreation benefits are defined as the sum of the maximum amount individuals arewilling to pay to engage in a recreation activity, rather than forego it (Loomis, 1997). Thisconcept is referred to as willingness-to-pay and is considered an appropriate economicmeasure of the benefits of outdoor recreation. As we will show, these economic benefits aredistinct from monetary expenditures on recreation.The standard method of illustrating this concept is shown in Figure 7. The downwardslopingline represents the market demand curve (for total visits to a park, outings on a trail,canoe trips, etc.). The curve illustrates that, theoretically, the lower the cost of an activity,the more likely it is that people will engage in that activity. At a $2 fee, the park willreceive 1000 visits. In this simplified example, the market value of the park is the annualnumber of visitors times the fee, or $2000, shown by the shaded rectangle APCB. For somepeople, the $2 fee is the maximum they would be willing to pay to visit the park. Theywould choose other activities if the fee were raised.Many people, however, would be willing to pay more than the $2 fee. Therefore, theseconsumers would be receiving extra benefits for which they don’t pay. This concept isreferred to as consumer surplus, as shown by the triangle DPC in Figure 7. The totalbenefits associated with the park are illustrated by the entire shaded area. If no fee werecharged, visitation would be expected to increase to E and total benefit would be the entirearea under the curve.117
Source: Spickard, 1978Figure 7. Demand Curve and Total BenefitMany studies have been conducted which attempt to measure the willingness-to-pay forrecreation activities. A composite table of study results is provided below that illustrates therange of willingness-to-pay, depending upon the activity. Willingness-to-pay may also varydepending upon the quality of the resource, or where the activity takes place. The tablebelow is a result of a statistical summarization of outcomes based on 701 use valueestimates from 131 different studies. It estimates the use values for 21 recreation activitiesfor each of the U.S. Forest Service assessment regions and for the United States(Rosenberger, 2001).118
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ECONOMIC IMPACTS OF PARKS, RIVERS,
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AcknowledgementsI am grateful to ma
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3.5.5 Sources of Information.......
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Table 28. Hiking/Walking Organizati
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1 IntroductionParks, rivers, trails
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Table 1.SectionAgency ExpendituresC
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provide communities with economic,
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the most current information on the
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3.1 Agency ExpendituresThis section
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grants. About 25% of capital expend
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The Marin Conservation Corps (MCC)
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already been implemented and is ope
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Table 5.Net Benefit Per Participant
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WEST VIRGINIAWISCONSINEarthCorpsFed
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contracts that gross over $800 mill
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3.2.2 Special EventsRevenue enhanci
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park experience to an audience who
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you have the opportunity to determi
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Use good survey methods. The better
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California. A Report to The Sierra
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powered activities 3 , a participan
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Table 11. 2003 Sport Footwear Purch
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3.3.4 Fish and Wildlife-Related Rec
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EQUIPMENT AND OTHER EXPENSESTotal $
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Table 17. Estimates of Retail Expen
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Table 19. U.S. Ski & Snowboard Indu
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and from services related to the Pa
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o $60 million in Harris County, TX,
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League ofAmericanBicyclistsNational
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SportingGoodsManufacturersAssociati
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necessarily better, especially in s
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Perspective. Available at http://ww
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o Washington: $209 milliono West Vi
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Economic Output Retail Sales Salari
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Economic Output Retail Sales Salari
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Table 35. Economic Impact of Sportf
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All Anglers Non-Resident/Tourist An
Page 76 and 77: Table 37. Per Capita Travel Receipt
Page 78 and 79: their decision to return in the fut
Page 80 and 81: Table 39. Visitors and Spending in
Page 82 and 83: 2003). Data from California Departm
Page 84 and 85: over 2003, despite high gas prices,
Page 86 and 87: management changes or actions are e
Page 88 and 89: accommodations used, and other trip
Page 90 and 91: http://www.ncdot.org/transit/bicycl
Page 92 and 93: 3.5 Estimating the Effects of Spend
Page 94 and 95: “leakage” of money from the reg
Page 96 and 97: Keep in mind that multipliers are s
Page 98 and 99: 3.5.4 How to Use These Rationales i
Page 100 and 101: economy, only those expenditures th
Page 102 and 103: For example, be aware of the differ
Page 104 and 105: 3.6 Health Care and FitnessThis sec
Page 106 and 107: active, approximately $575 million
Page 108 and 109: already had one heart attacko Impro
Page 110 and 111: uilt as part of sound policy to pro
Page 112 and 113: accounting for 14 million disabilit
Page 114 and 115: park amenities available or do not
Page 116 and 117: National Coalitionfor PromotingPhys
Page 118 and 119: 100% of all health benefits to a si
Page 120 and 121: Pratt M, Macera CA, Wang G. 2000. H
Page 122 and 123: costs than normal weight; moderate
Page 124 and 125: References for Additional Informati
Page 128 and 129: Table 47.Forecasted Average Benefit
Page 130 and 131: Table 48.CriteriaRecreationExperien
Page 132 and 133: people using carefully designed and
Page 134 and 135: special government funds for causes
Page 136 and 137: Loomis, J. B., and White, D.S. 1996
Page 138 and 139: Economic Assessment for the Necedah
Page 140 and 141: Commercial UsesExpenditures byResid
Page 142 and 143: Outcomes Expenditures by GGNRA mana
Page 144 and 145: local transportation admissions and
Page 146 and 147: 3.8.8 Educational ValueWhile it may
Page 148 and 149: the same municipality that are furt
Page 150 and 151: that do require storm water managem
Page 152 and 153: Summary of ActionsSimilar to corpor
Page 154 and 155: 3.9 Resource Book AppendicesSeveral
Page 156 and 157: 6. Spending in the area. Please rep
Page 158 and 159: local economy aren’t bringing in
Page 160 and 161: 4 ConclusionIn 1995, the National P
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