Paper Number: EE-0001

Document Date: 11/01/1989

Author(s):  Trudy A. Cameron

Subject Area(s): Economic Analysis, Benefits Analysis, Stated Preference Methods, Contingent Valuation, Recreation Demand Modeling

Keywords: Economic Analysis, Benefits Analysis, Stated Preference Methods, Contingent Valuation, Recreation Demand Modeling

Abstract: 

In an extensive earlier 1998 paper, the author developed a fully utility-theoretic model for the demand for recreational fishing access days, applied to a sample of 3366 Texas Gulf Coast anglers. The model employs "contingent valuation" and "travel cost" data, jointly, in the process of calibrating a single utility function defined over fishing days versus all other foods and services The theoretical specification (quadratic direct utility) and the econometric implementation will not be reproduced here. In this application, the author supplements the original data set with information from the ongoing Resource Monitoring Program of the Texas Department of Parks and Wildlife. The RMP concerns all species, but the report focuses on the abundance of the primary game fish (red drum) across the eight major bay systems and over time. This improves upon earlier studies which utilize endogenous actual catch information. The author allows the parameters of the underlying utility function to vary systematically with exogenously measured abundance to assess the impact of this important resource attribute upon the demand for access days. The author uses empirical estimates ( and counterfactual simulations) of equivalent variation as measures of the social value of the fishery under current conditions and under alternative fish stock scenarios.

The report consists of several papers and supporting materials for each, including:

"The Determinants of Value for Marine Estuarine Fishery: The Effects of Water Quality in Texas Bay."

• Appendix I - Nonlinear Optimization of the Censored Logistic Regression Model 
• Appendix II - Construction of Estimating Sample Data. 
• Supplementary Tables

"Combining Contingent Valuation and Travel Cost Data for the Valuation of Non-market Goods."

• Appendix I: An Alternative Interpretation of the Contingent Valuation Question
• Appendix II: Alternative Direct and Indirect Utility Specifications
• Appendix III: Estimates in the Absence of Travel Cost Data
• Appendix IV: An Ad Hoc Reweighing Scheme
• Appendix V: Implementing These Prototype Models in Other Applications

"Using the Basic “Auto-validation” Model to Assess the Effect of Environmental Quality on Texas Recreational Fishing Demand: Welfare Estimates. "

"The Effects of Variations in Gamefish Abundance on Texas Recreational Fishing Demand: Welfare Estimates."

This report is part of the  Environmental Economics Research Inventory.

• Contingent Valuation Assessment of the Economic Damages of Pollution to Marine Recreational Fishing (1989) (PDF)(207 pp, 60 MB, 11/01/1989, EE-0001, EPA-230-05-90-078)
  This paper extends prior research on measuring economic benefits from enhanced recreational fishing, supplementing the original work and data set with information from Texas DPW on fish species, focusing on the abundance of the primary game fish (red drum) across the eight major bay systems and over time. Papers allow the parameters of the underlying utility function to vary systematically with exogenously measured abundance to assess impacts of thisattribute on demand for access days.