An analysis of alternative methods of nonmarket valuation : applications to whitewater recreation

Graduation date: 1987This study analyzes and compares alternative methods of valuing nonmarket goods. Using a 1985 study of Rogue River non-commercial whitewater recreationists, benefit estimates of recreational use for this lottery-rationed river are derived using the zonal travel cost method (TCM) and the contingent valuation method (CVM). Two different techniques of the CVM were used: the open-ended question and the dichotomous choice, or take-it-or-leave-it\ud question (TIOLI). Willingness to pay (WTP) and willingness to sell (WTS) were estimated with both CVM techniques. Alternative assumptions and functional forms of the different methods are discussed and empirical results are compared.\ud Although confidence intervals for the dichotomous choice CVM estimates were not developed, the value estimates of the open-ended and dichotomous choice WTP estimates appear to be inconsistent. The consistency of\ud the open-ended and linear dichotomous choice CVM results with the TCM results is dependent on the values placed on travel time in the TCM. The TCM model using the more conservative opportunity cost of time spent traveling (1/4 the wage rate) approximates the value estimated with the open-ended CVM ($8.62 per day). The use of a higher opportunity cost of time (1/2 the wage rate) approximates the value estimated with the median of the linear dichotomous choice model ($12.72 per day). The logarithmic dichotomous choice form yields a higher value than any of the\ud other methods.\ud Finally, the flexibility, applicability, and cost of the different\ud methods and techniques are discussed