Estimating the Outdoor Recreational Value of Chitgar Forestial Park of
Tehran with the Use of Contingent Valuation Method (CV)
Majid
Kholuzini Sharahi1, Mohamad Hosein Mohamadi2, Azam Abedini3
1,3 University of Allame Tabataei, Tehran
2University of Ashrafi Isfahani,
Isfahan
Abstract. Among
issues related to the environment, one of the most important issues is pricing
the environment. In the present study, the outdoor recreational value of
Chitgar Jungle Park of Tehran and its visitors' willingness to pay per visit
(WTP) were estimated by using Contingent Valuation method (CV) and 140
questionnaires based on dichotomous choice. The results revealed that 30
percent of the surveyed people were willing to pay an entrance fee and the mean
willingness to pay for each visitor was estimated at 3076 Rials and its total
annual recreational value was estimated at 5 billion Rials. Among the effective
variables on individuals' visit of this park, recommendation, income, per-visit
cost, family size, and visits during a year were 1% significant; park
facilities and quality were 5% significant; and the visitors' use of personal
vehicles, education, type of house, as well as job were 10% significant.
Keywords: Environment, Contingent Valuation (CV),
Willingness to pay, Logit model
JEL Codes: Q51, C25,
Q29
1.
Introduction
Jungle
ecosystems have a number of tangible and intangible economic benefits for human
beings, which can be classified into four groups, namely, direct values,
indirect values, select values, and existence values. Direct values are
referred to direct use of resources which, in the case of jungles, include not
only timber trade but also resin, sap and aliments such as walnuts, hazelnuts
and Recreational and tourist incomes are also direct values. Indirect values
are referred to the benefits which people can gain indirectly. Environmental
and ecological benefits such as absorption of carbon dioxide, preventing soil
erosion, controlling floods, modifying the weather and biodiversity are
examples of indirect values. Select values include all direct and indirect
values which are realizable in future or the values attributed to the ability
to use the products and services in future such as future medical and
agricultural discoveries concerning plants and new ecological resources.
Existence values include the intrinsic value of a resource such as jungle and
the value which people consider solely for the existence of that resource and
its environmental activities. Therefore, recreational and tourist values are
direct values of jungles and parks and include recreation, spending leisure
time, walking and aesthetics (Hamid Amir Nejad, 1385 (2006)).
2.
Statement of the Problem
Contributions Capitals
related to nature and environments are very important in sustainable
development and so far many attempts have been made to estimate and appraise
the financial value of ecosystems' services. On a micro level, researches
regarding valuation will lead us to the data related to the ecosystem's
function and its pivotal role in human welfare; moreover on a macro level,
ecosystem valuation can participate in creating and modifying the indices of
welfare and sustainable development (Howarth & Farber, 2002).
Most of
environmental products and services can be placed in public goods category
because they frequently have no price tag and there are doubts about their
actual price (Karimzadegan, 1372 (1993)).
Valuation can be defined as the process of
evaluating a particular object or function. The valuation of non-market
functions and services of environment is of great importance due to many
reasons such as exploring environmental and ecological benefits by humans,
presenting the environmental issues to authorities, making connection between
economical policies and natural incomes, measuring the role and importance of
environmental resources in human welfare and sustainable development, modifying
national accounts such as GDP, as well as preventing the destruction and overuse
of natural resources (Vaze 1998, Ashim 2000, Guo et al. 2001).
In this
study, we attempt to estimate the outdoor recreational value of Chitgar Jungle
Park of Tehran by using contingent valuation method. We will determine the
factors influencing the payers’ willingness to visit as well.
3.
Theoretical Pricing Model
The value of natural resources in
environmental economics includes use value and non-use value. The use value is
the value gained from using products and services and is related to consumer's
surplus in recreational use of natural resources. The use value includes the
following: 1) Current use value, which is gained from the present use; 2) Expected
use value, which is related to the use value in near future; 3) Probable use
value, which is employed for use value in far future. The non-use value is the
utility gained while we have not actually used any products. It includes
existence value, friendship value, heritage value, and preservation value. In
addition, urban parks and green areas have several more functions as well.
Nature always attracts people with its beauties. Green vegetation with
fountains, resorts and purlieu is a proper means to lower stress and is a good
opportunity for exchanging ideas among families. Now the main question is that
how valuable the environment is for people and how much they are willing to pay
to enter parks. Although natural attractions have remarkable benefits, they
have limited financial resources. Charging entrance fee can be the best method
to raise funds and there are two views regarding this issue:
1.
Public-good View: In this view, income taxes are the only valid resource for
raising funds because they are national and belong to every individual and
maximize the welfare of all society; therefore, they should be free for
everyone.
2. Users'
payments View: The supporters of this view believe that profits belong to those
who use the environment because a small population of general public constantly
visits these areas. Therefore, charging entrance fee is a suitable policy and
can be a way of making money from international tourists because they pay taxes
where they come from. It is stated that this policy may be detrimental to the
low-income parts of the society and may decrease their use, but the answer is
that with various entrance fees, this problem can be resolved to some extent.
Evaluating environmental goods is highly
difficult because they have some of the public goods features such as being
indivisible and not possess-able; therefore, they have no market and it is
difficult to price them because when there is no market, allocations are not
effective..
Demand
function: In consumers' preferences is one of the basics of economics and the
most usual method is demand function. The demand function shows the amount of
commodity which a person with a certain income and by considering a certain
range of prices demands. In fact, demand graph is one of the methods to
summarize the importance of a product for a person; moreover by summarizing a
person's preferences for a product, we can calculate its total consumption via
demand curve. There are a number of problems in calculating demand function of
environmental goods, and the main problem is lack of market for environmental
goods. However, we know that people value environmental goods and are ready to
pay some money to preserve them. Therefore, we use the indirect method to
calculate the demand function.
4.
Indirect Methods for Calculating Environmental Goods Demand:
There are
two simple methods: 1) Revealed preference method; 2) Expressed preference
method.
1. Revealed
preference method: This method is based on people's actual preferences in the
market and extracting the demand through exchanging money and goods.
2. Expressed
preference method: It refers to expressing the use value or non-use value of
environmental goods by people. In this method, no goods is exchanged and
choices are hypothetical and it includes asking people questions.
Revealed
preference includes two methods:
1. Hedonic
method: In case of lack of market, the value of an environmental phenomenon is
calculated according to the market value of similar goods. Any difference
between prices is the result of environmental conditions difference which
affects the quality of products. For example, if other conditions are
identical, it is expected that a property in an area with good weather has a
higher price compared to a property in an area with polluted weather.
2. Household
production method: Consumers combine private goods with environmental goods and
use them so that they can obtain other desired goods. For example, if a house
is located near a street and noise pollution annoys the households, it can be
reduced by double-glazing the windows; in other words, we can obtain environmental
goods (peace and quiet) by spending money on a private goods. Therefore, the
expense that the family undergoes is equal to the value of environmental goods.
The approach
of expressed preference is dominant method of contingent valuation, that is, if
there was a market, how much a person would pay for environmental goods. In
other words, the consumer is asked how much he is willing to pay to obtain environmental
goods, or how much he is willing to receive to decide not to use environmental
goods. In fact, this method is based on a hypothetical market which is used as
an indirect method of demand estimation for environmental valuations.
5.
Methods for Estimating Outdoor Recreational Value of Jungle Parks and Choosing
Contingent Valuation Method
Travel cost
method: This method is based on the evaluation of environmental sceneries and
transportation projects, that is, if an individual goes to a recreational
location with the entrance fee of zero, the minimum cost for that place equals
to his access cost and we must add other costs to it as well. Since it varies
from one person to another, we can find a demand function for that recreational
place and by using that function we can calculate the consumer surplus as well.
This method has some flaws as well; for instance: 1) It can only be used for
certain locations (recreational attractions). 2) If an individual intends to
visit several recreational places, it will be difficult to separate them. 3)
The use of some places is seasonal and this method is not a short-term method
and the valuation may become biased. 4) Since the distance between the place
and people's houses varies, the value estimation may become unreal.
Considering
these limitations, contingent valuation method is frequently used. The
contingent valuation method was primarily proposed in theory by S.V.
Ciriacy-Wantrup (1947) and the first practical application of the method was
applied in 1963 by Davis. This method includes surveying people directly
regarding how much they value recreational or relaxing utilities. In fact, the
researcher's goal is to influence the degree of people's willingness to pay by
explaining market conditions in a hypothetical market so that he can inform people
why financial resources are necessary and in what parts, they will be spent.
This method can be applied via two approaches:
1.
Experimental approach based on simulation
2.
Collecting data through questionnaires or survey techniques.
Willingness
to pay: The willingness to pay is a criterion for measuring a consumer's
benefits from a change in price or amount of a merchandisewhich most of it is
related to outdoor recreational utilities and natural attractions since a
natural attraction with free access is a non-market goods. The willingness to
pay (WTP) is the amount a person would be willing to pay in order to obtain an
increase in his welfare or to avoid a decrease in his welfare. Estimation of
WTP for natural attractions is the basis of social cost-benefit analysis which
is based on Kaldor-Hicks criterion. In general, when there is no market, the
ultimate willingness to pay for a goods or service is considered as its shadow
price, which depends on distribution of income, wealth and resource allocation in
the entire economy and society.
6.
Effective Factors on Willingness to Pay
The value
that people consider for visiting and using recreational areas belongs to these
places and people can show that by the amount of money they are willing to pay.
The difference in people's willingness to pay comes from demographical,
economical, social, and other related factors.
According to
Ajzen Model (1966), behavioral variables such as willingness to pay are a
function of attitudes influenced by individuals’ behavioral experiences. The
findings of Manfredo and Ker (1991) indicate that people’s past behavior is
effective in willingness to pay. Knetsch (1984) showed that the demand for
natural attractions with unique sceneries and remarkable recreational
facilities is inelastic to price.
Variables
such as income, visitor’s overall satisfaction, using a guide while visiting,
group tour, and economic-political stability have positive influence and the
number of previous visits has negative influence on willingness to pay (Reynisdottir
& Song & Ayrusa, 2008).
6.1.
Advantages
and Ddisadvantages of this Method
Criticism:
The results of surveys are based on hypothetical assumptions; therefore, they
are biased (Hausman, 1993), which can be as a result of choosing incorrect
samples, low ratio of answers, and other related factors.
According to
Arrow (1993), the identified bias in this method is: Design bias, which
includes the subjectivity for setting the asking price with payment tools.
Operational bias is referred to lack of knowledge concerning the goods which we
will evaluate. Hypothetical bias suggests that the force to pay may not really
happen in near future. Strategic bias recommends that people's willingness does
not reveal their actual preference, that is, general public tend to influence
the future pay by overstating or understating their real willingness to pay. In
fact, the aforementioned bias is categorized in four main categories.
Hypothetical
bias: The main reason for hypothetical bias, according to researchers, is that
respondents are asked to express their willingness to pay for changes.
Moreover, they are frequently hypothetical and the responses may be unreliable.
The best studies are those closer to reality.
Information
bias: It originates from the information
provided to the respondents in such a way that the primary prices offered to
people are effective in forming their paying. In payment vehicle bias, it is
stated that reasonable behavior can explain the reason for the relation between
willingness to pay and payment tools. Evidence suggests that the amount of
asking price can be sensitive to payment method.
Strategic
bias: it is caused by respondent’s personal tendency to influence the results
of the study. This bias is one of the clear examples of hitchhiking phenomenon
in which the respondent, while answering the question, considers if he will
really be asked to pay the asking price in the future; subsequently, he
expresses the amount of his willingness to pay based on that problem.
Although
bias cannot be completely eliminated, careful design of the questionnaire and
statistical process of survey can control the bias of respondents and minimize
them.
This method
has several advantages such as widespread use, reliable valuation of travels
without considering if the aforementioned place is the first destination or the
second, ability to estimate both use value and non-use value and the
possibility to study the surveys which lack market data. These have made this
technique a highly practical tool in economic analyses.
Payment
vehicle: It is very important to choose an appropriate payment vehicle because
the type of payment vehicle can greatly affect the results. In general, the
common vehicle for recreational values charges an entrance fee and other
vehicles pertaining to preservation and security are usually in the forms of
taxes, entrance fees, or cash donations.
The most
important ways of collecting data are: Direct interviews, questionnaires and
telephone surveys. The direct interviews for being expensive, surveying via
letters for the low number of received responses, and telephone surveys for limiting
the information are not usually used. In most surveys pertaining to contingent,
valuation questionnaires are used. According to aforementioned points, in order
to let respondents know about the hypothetical market, a DDC questionnaire was
designed for interviews and finding out visitors’ WTP for estimating the
outdoor recreational value of Chitgar jungle park of Tehran. This questionnaire
consists of two parts. The first part includes the socio-economic status of
respondents in a way that it surveys regarding their education, number of
family members, income and other characteristics. The second part is related to
their willingness to pay. In this part, three offers of 3000 Rials, 5000 Rials
and 7000 Rials, which were obtained by using Gauss software, were prepared in
the form of three related questions. In the first question, we asked about the
average price (5000 Rials) which by this means: Chitgar Park has provided an
opportunity of recreation and relaxation for you; are you willing to pay 5000 Rials
as an entrance fee to use them? In case of negative answers, the lower price
(3000 Rials) was asked and in case of positive answer, the higher price (7000
Rials) was asked. The respondents could respond either positive or negative
answer and if they were not willing to pay anything, they were able to give no
answer. To estimate the adequate number of samples, Cochran Formula and simple
random sampling were used in this study. The adequate number of samples was
obtained based on analysis of mean and variance of the statistical population
resulted from filling 30 questionnaires. At the end, 145 questionnaires were
filled and 19 of them were placed aside because they were incomplete or the
questions were not understood by respondents. The other 126 questionnaires were
analyzed. Questionnaires were completed in two weeks in summer 1391 (summer
2012).
7.
Methodology
In our
methodology for estimating the willingness to pay, we assume that the person
accepts the offered entrance fee provided that he maximizes his utility (John
Asafu, 2008). The utility that a person gains by using environmental resources
is more than the time that they do not use environmental resources.
U(1,Y-A;S)+ε_(1
)≥U(0,Y;S)+ε_0
The
difference of utility because of using environmental resources is calculated as
follows (John Asafu, 2008):
U=U(1,Y-A;S)-U(0,Y;S)+(ε_1-ε_0)∆
1 represents
acceptance of paying entrance fee, 0 is designated as refusal of paying
entrance fee. A is assigned as the offered entrance fee, Y stands for the
person’s income and S is other characteristics. ε_1 〖and ε〗_0 are random variables with the mean of zero
which have been distributed equally and independently.
(P_i), the
possibility that the person will accept the price A, is as follows (based on
logit model). It is an indirect utility that the visitor gains.
Y stands for
the person's income, A is the offered price and S is other characteristics.
7.1.
Introducing
Chitgar Park
Chitgar
Park, with an area of 950 hectares, has always been an attractive resort for
Tehran's residents to spend their leisure time. However, due to different
problems including lack of appropriate recreational services and security, its
permanent use has not been possible. Geographically, the park is located
between Tehran and Karaj and it is surrounded by small towns. From south, it is
limited to Tehran-Karaj highway and railway and from north, it is limited to
Resalat highway and from west, it is limited to Peykan Shahr town and the
Botanical Garden. It is predicted that the foresight of a central lake in the
reorganization plan of Zone 22 of Tehran, with an area of about 355 hectares
(the lake basin is less than 100 hectares) and capacity of 35 million m2 of
water, located adjacent to Chitgar Jungle Park can make it the largest
recreational facility in Tehran. The land of park has many ups and downs;
therefore, it has many steep slopes ranging from 0 % to 80%.The park is mainly
stretched from east to west and the ups and downs are mostly formed by small
hills. Chitgar water course divides the park into western and eastern parts.
The eastern part has an area of about 253 hectares and the western parts covers
an area of nearly 658 hectares. The lowest and highest altitudes of the park
are respectively 1225 and 1313 meters (the difference between highest and
lowest points is 88 meters). The trees covering the park include an area of
about 734 hectares. Approximately, 53 percent of these trees are
acicular-leaved trees. In total, acicular-leaved trees cover about 390 hectares
of the park (about 48% of the park's total area). Broad-leaved trees cover 47
percent of the park.
The current
facilities of Chitgar Park include cultural-sports complex, playgrounds,
conference hall, storehouse, bicycle station and cycling track, fire station,
restaurants and cafes, office buildings, parking, gazebos and tents.
Most of
these facilities are located in the eastern part of the park and the western
part has fewer facilities and is remained intact and wild.
8.
Review of Literature
Many efforts
have been made to estimate the amount of benefits gained from recreational
forest and national parks. Such activities are an important part of
benefit-cost analysis for management plans of jungle parks. In addition, a
number of researches have been made regarding environmental preservation using
contingent valuation method. The outdoor recreational value of Madagascar
Jungles was estimated $360 to $468 using travel cost method (Maille&
Menderlsohn 1991). The value of jungles of Montana State of America, according
to contingent valuation method, was $108 for each travel and for eastern
jungles of America, this amount was $10.43 a year for each household (Krieger,
2001). The outdoor recreational value for five Korean national parks using CV
method was an average of $10.45 a year for each household (Lee Shan, 2002).
Echeverria, et al. (1995) estimated the existence value of Costa Rican jungles
$238 per hectare a year. Tomas, et al. (1997), using CV method, found out that
people were willing to pay between $5 to
$325 a year in the United States of
America in order to protect groundwater from chemical pollutants. Pajiola
(2001), using CV method, estimated that locals and tourists were willing to pay
$170 and $70, respectively in order to repair the Roman
Palace in the ancient city of Split, Croatia. Togrido, et al. (2006) estimated
visitors' WTP for Alonnisos Marine Park, Greece 120 and 30 BWP for locals and
tourists, respectively. Costanza, et al. (1997) studied the total value of
environmental and ecological services of 17 different ecosystems around the
world and reported the outdoor recreational value of $112 for tropical jungles as well as $36 per hectare for temperate
jungles. The outdoor recreational value of Malaysian jungles, using CV method,
was estimated at $740 per hectare. Amigues, et al. (2002) estimated the
preservation value of Garonne river bank ecosystem in France, using CV method
with Tobit linear model, semi-logarithmic model and Heckman two-stage model
respectively at 67 FF, 66.13 FF and 133 FF. Whitehead and Finney (2003) valued
the North CarolinaCoast, US, using CV method. The mean WTP for each visitor was
$36 and the annual benefit gained from historical shipwreck park was estimated
at 1.75 million dollars (this coast has about 5000 shipwrecks).
Several
studies in Iran that have used CV method are as follows: For the first time,
the outdoor recreational value of Sisangan park was studied in 1353 (1974)
using TC method and was estimated at 8960 Rials (Bakh shaei, 1353(1974)).
The value of
Northern jungles of Iran is $2.51 for each household and the annual value is $30.13
(Amir Nejad, Khalilian, Osareh and Ahmadian, 2006). Asgari and Mehregan (1380
(2001)) estimated the WTP for historical Ganj Nameh in Hamedan, Iran, 1560
Rials per visit, using CV method. Mowlayi et al. (1380 (2001)), using CV
method, showed that the WTP for preservation of Arasbaran jungle ecosystem was
112.52 Rials for each household a year. Dashti and Sohrabi (1387 (2008))
estimated the WTP for Nabovat Park in Karaj, Iran, at 3300 Rials for each
visit, using CV method. The mean WTP for tourist value of Golestan national
park was estimated at 3520 Rials per visit. The annual tourist value of this
park was estimated at 1.96 million Rials per hectare and its total tourist
value at 18 billion Rials (Amir Nejad, 1384(2005)).
Emami
and Ghazi (1386 (2006)) estimated the mean WTP for Saeei Park of Tehran at 1840
Rials per visit, its monthly recreational value at 220 million Rials and its
total annual recreational value at 2.7 billion Rials.
Zahra
Tavakoli in her Master's thesis at Tehran University estimated the mean WTP for
Chitgar Park 419.7 Rials per visit, using CV method. The independent variables
of age, family size, number of previous visits, the offered price, income,
gender and visitors' satisfaction were significant and the independent variable
of education was negatively significant in this study, which is against
economic theories. In the present study, using a different questionnaire, we
found out that the independent variables of using personal vehicles, cost of
visit, education, number of family members, park facilities, owning a house,
income, visitors' opinion about park quality, average annual visits of park,
job, and the offered price are significant.
9.
Results and Discussion
To estimate
the value of park, those visitors were surveyed who were financially
independent; therefore, at the beginning of the questionnaire, we mentioned
that we needed those who had independent income and free will.
Various
questions were asked in this questionnaire. The variables are as follows: age,
gender, education, membership in environmentalist organizations, marital
status, number of family members, income, using personal vehicle, estimating
the cost of visit, travel duration, time spent in the park, number of annual
visits, environmental quality of park (choosing from 0 to 100), current park
facilities (choosing from 0 to 100), and
type of housing.
Table 1: Distribution of visitors' jobs
|
employee |
teacher |
Self-employed |
student |
Housewife/husband |
worker |
retired |
total |
number |
37 |
6 |
33 |
27 |
13 |
7 |
3 |
126 |
percentage |
29.37 |
4.76 |
26.19 |
21.43 |
10.32 |
5.56 |
2.38 |
100 |
Table 2: Distribution of visitors' education
|
Doctorate |
Master's |
Bachelor's |
Associate's |
Diploma and under |
Total |
number |
0 |
12 |
43 |
26 |
45 |
126 |
percentage |
0 |
9.52 |
34.13 |
20.63 |
35.71 |
100 |
Seventy of
respondents (55.56 %) were men and 56 of them (44.44 %) were women. Eighty
eight people (69.84 %) were not willing to pay an entrance fee and 38 people
(30.16 %) were willing to pay an entrance fee.
Twenty five
of respondents accepted the 5000-Rial entrance fee. Six people were willing to
pay the 7000-Rial entrance fee after they had accepted the 5000-Rial entrance
fee. Seven individuals did not accept the 5000-Rial entrance fee but were
willing to pay 3000 Rials as an entrance fee. The logit model results, after
elimination of insignificant variables, are shown in table 4.
Table 3: The logit model results for Chitgar
Park, after elimination of insignificant variables
variable |
coefficient |
t-statistic |
Significance |
Constant
factor |
-9.881973 |
-2.322780 |
0.0202 |
Vehicle |
2.480777 |
1.740382 |
0.0818 |
Cost |
-0.141554 |
-2.608796 |
0.0091 |
Education |
-0.939745 |
-1.710225 |
0.0872 |
Number
of family members |
-1.522711 |
-3.001174 |
0.0027 |
Facilities |
0.084020 |
2.544638 |
0.0109 |
Housing |
2.302760 |
1.849446 |
0.0644 |
Income |
0.008193 |
2.863980 |
0.0042 |
Quality |
0.071872 |
2.384186 |
0.0171 |
Visits |
0.271852 |
2.855010 |
0.0043 |
Job |
-0.563401 |
-1.911998 |
0.0559 |
Offer |
-0.0021376 |
-3.234544 |
0.0012 |
Mc
Fadden R-squared=0.679329 LR
statistic:93.31836
prob(LRstatistic)=0.000000 Log
likelihood=-22.02508 |
Reviewing
the coefficients shows that the most important explanatory variable, which is
entrance fee offer, is at 1% significance level and it is minus which means the
more the entrance fee increases, the less its WTP will be. The coefficient of
income variable is at 1% significance level and it is positive, which means the
more the income, the more the possibility of willingness to pay of an entrance
fee. The cost variable is at 1% significance level, which means the more the
travel cost, the less they are willing to pay an entrance fee.
The number
of visits during a year is at 1% significance level and has a positive effect.
The number of family members is at 1% significance level and has a negative
effect. The park facilities and quality have a positive effect at 5%
significance level. The type of housing is at 10% significance level, which
means those who own a house are willing to pay a higher entrance fee. The
vehicle variable is at 10% significance level and has a positive effect. Job
has a negative effect and shows that the retired and workers are willing to pay
a lower entrance fee and it is at 10 % significance level. All these are in
compliance with the theory.
The
education variable is at 10 % significance level and has a negative effect
which is due to the way of entering the variables into the software, because we
attributed 1 to doctorate, 2 to Master's and so on. That is, as the education
decreases, the WTP also decreases, and this is in agreement with economic
theories.
9.1.
Calculating
the WTP and the total annual outdoor recreational value of the park
There are
three ways for calculating the amount of WTP: 1) the mean WTP, in which the
numerical integration over the domain of zero to infinity is used in order to
calculate E (WTP). 2.) The mean of total WTP, which they use the integration
over the domain of -∞ to+∞ for calculating E (WTP). 3) The mean of
approximate WTP, in which the numerical integration over the domain of zero and
maximum offer (A)is used in order to calculate E (WTP). Among these approaches,
the third one is the best because it retains the consistency and agreement of
limitations with the theory, statistical efficiency, as well as integrability.
E(WTP)=
E (WTP) is
the expected amount of WTP andα^*is the adjusted y-intercept that other
effective factors have been added toα^*.
E(WTP)=∫_0^7000▒1/(1+exp{-(6.459-0.0021A)}
) dA=3076.334
An amount of
3076.334 is obtained for each visit of the park.
Based on the
interviews with officials concerning the number of visits to the park, the
following statistics was received. The average number of visits on weekdays was
5500; on Thursdays, it was 9000 people; on Fridays, it was 12000 people and on
national Nature Day (April 2nd), it was 250,000 people. Therefore, the number
of total annual visits is 1,654,500 individuals and the total outdoor
recreational value is calculated through the following equation:
Total value
of park= the mean WTP * the number of total annual visits
Total value
of park= 3076.334 * 1654500= 5089794600
Thus the
total outdoor recreational value of the park is 507,327,442.05.
10.
Conclusion
In this
research, we studied the outdoor recreational value of Chitgar Park and
determined whether people were willing to pay an entrance fee. We used the CV
method and dichotomous-choice questionnaires because people can choose their
criteria based on monetary measures. Given that Iran is a developing country,
only 30 % of people are willing to pay an entrance fee. In this study, the mean
WTP was 3076.334 Rials and its maximum amount was 7000 Rials. The total outdoor
recreational value of the park was estimated at 5,089,794,600 Rials, which
shows the value users allocate for the environment. The results reveal that the
amount of entrance fee, income, number of visits during a year, number of
family members and cost are the most influential factors on willingness to pay and
they are at 1 % significance level and park facilities and quality are the
variables which are at 5 % significance level. Using a personal vehicle,
education, owning a house and job are the variables that are at 10 %
significance level. Since park quality and facilities are variables influential
on accepting an entrance fee, we can attract more people to parks by creating
suitable places for families and improving the facilities including public
restrooms and playgrounds. Considering the air-pollution in Tehran, attracting
more people to parks can be an effective step to increase users' psychological
comfort and peace.
11.
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