A cost-benefit analysis of restoring the Em River in Sweden: valuation of angling site characteristics and visitation frequency

Abstract

This article uses Cost-Benefit Analysis (CBA) to evaluate restoration scenarios aimed at improving angling on the Em River in Sweden. We find that none of the proposed projects are socially profitable when considering only values associated with angling. We rely on a Choice Experiment (CE) to derive utilities and estimate the monetary value of angling site characteristics and then also use the utilities derived in a visitation frequency using a two-stage budgeting approach. The visitation frequency is then used to extract values for fishing license sales and business-related income. The case study illustrates how CBA can provide useful insights into the potential economic returns of environmental restoration projects. Our case study also indicates that the results in terms of Willingness-To-Pay (WTP) and visitation frequency are general findings - i.e. they appear similar across angling sites - which is particularly useful from a policy point of view because it supports the use of benefit transfer for more cost-effective river management.

Keywords

CBA; stated preference; logit; Poisson; recreational fishing; WTP; RUM

Published in

Applied Economics
2013, Volume: 45, number: 16, pages: 2255-2266
Publisher: ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD

SLU Authors

• Paulrud, Anton

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    
  • Swedish Agency for Marine and Water Management

UKÄ Subject classification

Economics


Publication identifier

DOI: https://doi.org/10.1080/00036846.2012.659348

Permanent link to this page (URI)

https://res.slu.se/id/publ/53689