Recreation is an important ecosystem service in coastal and marine ecosystems. The methodology for valuing recreational services is well developed in the literature. To the best of our knowledge, this is the first attempt at estimating a country-wide value for this service. Using the zonal travel cost method we estimate the partial value of this service to be Rs 531.7 billion in 2012-13 for domestic tourists when consumer’s surplus component is not added. Therefore, this represents a floor value. This constituted about 0.49% of the GDP (at current prices in that year). It is expected that the final value of these services will be higher than what this estimate suggests as it constitutes only what the consumers (recreational visitors) spent in their travel by way of cost of travel, accommodation and income forgone (opportunity cost). The main purpose of this exercise is to understand how these ecosystems services are valued by individuals as there is no direct way to recognize their value. It then helps us to allocate resources better and conserve natural capital.
by Pranab Mukhopadhyay and Vanessa da Costa; both of Department of Economics, Goa University, Goa and Visiting Scholars, Madras School of Economics) (firstname.lastname@example.org)
Madras School of Economics
Working Paper 124/2015; September, 2015
via REPEC Research Papers in Economics www.REPEC.org