Recreational-Benefit Estimation for Lake Water-Quality Improvement: A Comparative Analysis

摘要

The primary objective of this study was to develop a model by which the economic values of those presently not marketed services provided by lake water body can be quantitatively assessed and the effectiveness of the public investment projects evaluated. The technical procedures underlining the model are illustrated as follows: first, a utility function relating travel cost and person-trips to the lake is developed in a demand function for lake recreation; secondly, the demand functions and the consumer surplus measures under the functions are exposed; thirdly, the shifts of the demand functions, before and after the project, are assessed so that the net benefit of the project can be represented by the changes in the consumer surplus per person-trip; finally, the incremental changes in the value of total consumer surplus gained or lost, per period of time, are determined and consequently, the cost-effectiveness of the restoration project evaluated accordingly. A site-specific lake demonstration project is used as a case study in this cost-effectiveness evaluation model. The feasibility and empirical difficulties of the model are also illustrated. (ERA citation 06:027692)