Estimating the Non-Market Value of a Single Site: The Case of the Dalsnuten Recreation Area

Abstract

Outdoor recreation is open access and generally without any direct monetary costs to hikers. The benefits gained by visiting recreational areas are not directly observed in a traditional market of demand and supply. Therefore, the value of recreation can not be calculated as straightforward as market commodities can. In this master thesis, we examine the non-market value of the Dalsnuten recreation area in Sandnes, Norway. We conduct a combined revealed and stated preference estimation in an individual travel cost model to measure recreation benefits under status quo conditions and with policy relevant quality changes. In order to do this, we utilize an on-site survey to obtain revealed and contingent behavior data. Panel recreation demand models are estimated and used to derive total consumer welfare with and without quality changes. Individual consumer surplus per trip is found to be in the range from NOK 58.51 to 98.97 in twelve estimated models. From our preferred model, the estimated non-market value of the Dalsnuten recreation area is approximately NOK 17.350 million. Changes in welfare stemming from hypothetical changes in site quality was estimated for trail quality improvements and presence of windmills in the viewscape. The aggregated increase in welfare due to the hypothetical scenario of trail quality improvements is estimated to be NOK 5.964 million, while the estimated reduction in welfare due to the scenario of windmills is NOK 3.316 million.