Essays on environmental valuation: applications of the travel cost demand model
Date
2023
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Publisher
University of Delaware
Abstract
Sound natural resource management takes into account the entirety of costs and benefits associated with policy action. Understanding these consequences in relation to nonmarket products or externalities requires a precise evaluation of consumer preferences and behavior. The chapters of this dissertation establish this information in relation to offshore wind development on the East Coast of the United States and recreational freshwater fishing in the state of Delaware. ☐ In chapter 1, we assess the impact of offshore wind power projects on recreational beach use along the East Coast of the United States using contingent behavior data from a stated preference survey. The data are from a probability-based sample of beachgoers (n = 1,725) who visited beaches from Massachusetts to South Carolina in 2015. The contingent-behavior results are based on responses to visual simulations of wind power projects at seven various offshore distances (2.5 to 20 miles) under clear, hazy, and nighttime conditions. As expected, the closer a project is to the shore, the greater its negative impact on beach enjoyment and visitation. For instance, at 2.5 miles offshore, the aggregate cost to beach visitors in a frequently visited beach (such as Rehoboth Beach, Delaware) may reach $35 million, whereas at 20 miles offshore, the loss would be just $11 million. In our estimations, we account for curiosity trips to view wind turbines. ☐ In chapter 2, we estimate a recreation demand model for warm-water fishing in Delaware and use it to measure welfare gains associated with improved fishing quality as measured by catch rate of fish, diversity of species, and clarity of water. We use a “linked” site choice - trip frequency model with data gathered by the Delaware Division of Fish and Wildlife. Our site choice model includes 118 rivers and lakes in the state with detailed characteristics on each. We develop hypothetical scenarios of fishing quality improvement involving combinations of fish catch, fish diversity, and water clarity and apply it to individual water bodies, water basins, selected water body groupings, and statewide. Values are reported in per-person, per-season, and aggregate terms. ☐ And finally, in chapter 3, we estimate the benefits and costs associated with Delaware’s put-and-take trout fishery. We use existing data gathered by the state to estimate a Random Utility Model of trout fishing and then use the model to simulate the economic benefits associated with existing and possible new trout fishing programs. The costs are estimated using per-fish market rates of stocking in the region by hatcheries employed by the state. We find that all current programs easily pass a benefit-cost test and that modest expansions at existing stocking sites and new sites also make sense from an economic perspective. Although current fees for annual trout licenses produce revenue that falls well below the cost of stocking, from the perspective of social efficiency an even larger program is recommended. The model also implies that anglers are willing to pay a higher fee for purchasing trout licenses.
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Keywords
Environmental valuation, Delaware, Fish diversity, Trout fishery, Stocking