Nonmarket Goods: Evaluating Recreation Using Surveys

1
Nonmarket Goods Evaluating Recreation Using
Surveys

• Dr Mira G. Baron
• Economics Area, Faculty of Industrial Engineering
  and Management
• Technion-Israel Institute of Technology
• A conference in honor of Prof Shechter
• November 29, 2007, Haifa

2
The results

• The location and the timing of a survey affect
  the results.
• generalizing from one research to another, like
  in benefit transfer, requires to guarantee
  similarity between the cases.

3
Surveys Regarding Outdoor Recreation

• Karmel National Park, 1974
• Enis, Baron Shechter
• 845 interviewees in major sites of the park
• Hula Project, the Agamon, 1997
• Baron, Zaitsev, Shechter
• 800 observations in various parks in the Upper
  Galilee
• Playgrounds in Haifa, 2007,
• Baron, Tkach

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Recurring Questions

• How to ask CVM questions?
• Are the residents visiting parks?
• Are they willing to pay for a visit?
• How long does reaching the park take?

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1974 Home Survey

• 2000 families from the major cities were surveyed
  at home.
• 47 of the population in 1971-72 visited at least
  once an outdoor recreation parks. Those who
  visited, had 1.3 visits per year.
• 54.0 have never visited the Carmel park.
• 9 visited the Carmel in the last twelve months

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Home and Sites Surveys

• In both surveys the interviewees were asked a WTP
  question
• There is a proposal to charge entrance fees to
  Carmel National Park. In order to enjoy a visit
  at its current stage. Would you be willing to
  pay ..A close ended format of the question, and
  not an open ended.

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• Alternatively we asked on willingness to pay in
  time.
• Those who visited the park were asked
• There is a proposal to limit the number of
  entrances to the park. Would you visit the park
  if the trip would be an hour longer 0.5 hour
  longer 0.25 hour longer
• 6.7 out of 16.3 are willing to spend an extra
  hour.

8

• Those who have not visited the park in the last
  year, were asked
• There is a proposal to construct a road that will
  shorten the road to the park. Will you be
  attracted, if the drive is 0.25 hours shorter
  0.5 hours 1 hour shorter.
• 8.4 will be attracted if the trip is an hour
  less, out of 19.4 that are sensitive to time.

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Home survey

• 22.7 are not willing to pay.
• 33.4 I dont have an opinion, since I dont know
  the park.
• 5.4 did not respond.
• The above totals 61.5
• Only 38.5 were willing to pay, median 1.5 Lira
• Site survey
• 38.7 are not willing to pay.
• 0.2 did not respond.

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conclusion

• The results from home surveys and on-site surveys
  are very different.
• Home survey enables to ask those who do not
  participate at present. Requires a very large
  sample, else people dont know that site.
• Site surveys enable to learn on pattern of
  activities, size of group, WTP, TCM.

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Hula Project

• Hypothetical questions regarding willingness to
  visit and to pay in a hypothetical park (a close
  ended format).
• Place of interview existing parks in the
  vicinity of the hypothetical park.
• In most of the existing parks entrance fees are
  charged.

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• 1.1 are willing to pay zero sum.
• 0.9 are willing to pay some positive sum.
• 98 are willing to pay between 10-50 NIS median
  30.
• Questions on time of travel and length of stay,
  reaction to density

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Conclusion

• Since entrance fees became common, visitors are
  willing to pay.
• Since on-site survey, we cannot predict the
  reaction of currently non-participants.
• Conducting a home survey is very expensive, but
  is required.

14
Playgrounds in Haifa

• Playgrounds were selected to represent the city.
• 250 interviewees in 12 urban playgrounds
• The playgrounds are located in various
  neighborhoods. A sample in terms of
  socio-economic characteristics of neighborhoods,
  quality of facilities (good quality, needs to be
  dismantled), distance to a major road.

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Questions

• How long takes the walking/driving to the
  playground
• Which other playgrounds do you visit
• What is your evaluation of the facilities
• What is your reaction to noise/air
  pollution/traffic in the playground
• WTP questions.

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• Are you willing to pay for upgrading the
  facilities? Yes_no_
• Choose the sum you are willing to pay per month
• Are you willing to pay an addition to city taxes,
  a subscription, or not willing to pay
• How much are you WTP for constructing a new
  playground?

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WTP to upgrade facilities in the playground
18
WTP to construct an extra playground in the
neighborhood
19
WTP to prevent dismantling of the playground
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• How to explain that in the Hula 98 were willing
  to pay a substantial amount, and in playgrounds
  60-70 are not willing to pay anything.
• Many parks in Israel are now excludable. Visitors
  accept the need to pay an entrance fee.
• Playgrounds are not a pure public good. They are
  non-excludable, but rivalry could be a problem,
  depends on the number of users vs. number of
  facilities.

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Future Challenges

• How can we evaluate parks and playgrounds. What
  is the population to be surveyed.
• Is recreation to be provided free of charge.
• The evaluation is needed since we have to
  consider investment and maintenance (CBA).
• Haifa had more than 300 playgrounds for a
  population of 270,000.
• Can the municipality reduce the number of
  playgrounds. Which of them to rehabilitate?
• Are the citizens willing to pay the price?

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• Under which conditions can we transfer benefits?
• What do we know of sub-groups which dont
  participate at present, e.g., religious sects.
  They are often not present in parks and are not
  interviewed.

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