IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v212y2023ics0921800923001684.html
   My bibliography  Save this article

Ecosystem accounting: Reconciling consumer surplus and exchange values for free-access recreation

Author

Listed:
  • Scheufele, Gabriela
  • Pascoe, Sean

Abstract

The United Nations Statistical Commission (UNSC) has adopted chapters 8–11 of the System of Environmental-Economic Accounting—Ecosystem Accounting (SEEA EA) as the internationally recognized statistical principles and recommendations for the valuation of ecosystem services and assets for use in ecosystem accounts. This has provided new challenges for environmental economists. Ecosystem accounts capture the contribution of ecosystem assets to economic activity in a compatible way to the traditional System of National Accounts. Both are based on exchange instead of welfare value, with the latter commonly estimated and used in welfare analysis. To estimate exchange values for ecosystem services that contribute to the generation of non-market benefits, exchange prices need to be derived. In this paper, we apply the simulated exchange value (SEV) method to derive exchange prices and values to account for recreation-related services using the travel cost method. We show that exchange prices and average consumer surplus estimates are related. Further, we show that when travel-cost based exchange prices are considered, the proportional reduction in trip numbers is constant if the marginal enabling cost are zero, simplifying the modelling process. We demonstrate the development of accounts for an example recreational fishery based on these measures.

Suggested Citation

  • Scheufele, Gabriela & Pascoe, Sean, 2023. "Ecosystem accounting: Reconciling consumer surplus and exchange values for free-access recreation," Ecological Economics, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:ecolec:v:212:y:2023:i:c:s0921800923001684
    DOI: 10.1016/j.ecolecon.2023.107905
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800923001684
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2023.107905?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Timmins, Christopher & Murdock, Jennifer, 2007. "A revealed preference approach to the measurement of congestion in travel cost models," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 230-249, March.
    2. E. Boyd Wennergren, 1964. "Valuing Non-Market Priced Recreational Resources," Land Economics, University of Wisconsin Press, vol. 40(3), pages 303-314.
    3. Gaetano Grilli & Silvia Ferrini & Tiziana Luisetti & R. Kerry Turner, 2022. "The role of choice experiments in natural capital accounting approaches: fast track versus simulated exchange value in the Deben Estuary saltmarshes," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 65(7), pages 1281-1300, June.
    4. Louisa Coglan & Sean Pascoe & Gabriela Scheufele, 2021. "Availability of Non-Market Values to Inform Decision-Making in Australian Fisheries and Aquaculture: An Audit and Gap Analysis," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    5. Frank Lupi & Daniel J. Phaneuf & Roger H. von Haefen, 2020. "Best Practices for Implementing Recreation Demand Models," Review of Environmental Economics and Policy, University of Chicago Press, vol. 14(2), pages 302-323.
    6. V. Kerry Smith, 1990. "Estimating Recreation Demand Using the Properties of the Implied Consumer Surplus," Land Economics, University of Wisconsin Press, vol. 66(2), pages 111-120.
    7. Pascoe, Sean & Doshi, Amar & Dell, Quentin & Tonks, Mark & Kenyon, Rob, 2014. "Economic value of recreational fishing in Moreton Bay and the potential impact of the marine park rezoning," Tourism Management, Elsevier, vol. 41(C), pages 53-63.
    8. De Salvo, Maria & Signorello, Giovanni, 2015. "Non-market valuation of recreational services in Italy: A meta-analysis," Ecosystem Services, Elsevier, vol. 16(C), pages 47-62.
    9. Sumarga, Elham & Hein, Lars & Edens, Bram & Suwarno, Aritta, 2015. "Mapping monetary values of ecosystem services in support of developing ecosystem accounts," Ecosystem Services, Elsevier, vol. 12(C), pages 71-83.
    10. Burt, Oscar R & Brewer, Durward, 1971. "Estimation of Net Social Benefits from Outdoor Recreation," Econometrica, Econometric Society, vol. 39(5), pages 813-827, September.
    11. Timo Kuosmanen & Eleonora Nillesen & Justus Wesseler, 2004. "Does ignoring multidestination trips in the travel cost method cause a systematic bias?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(4), pages 629-651, December.
    12. Cetin, Nuket Ipek & Bourget, Gulhan & Tezer, Azime, 2021. "Travel-cost method for assessing the monetary value of recreational services in the Ömerli Catchment," Ecological Economics, Elsevier, vol. 190(C).
    13. Pascoe, Sean, 2019. "Recreational beach use values with multiple activities," Ecological Economics, Elsevier, vol. 160(C), pages 137-144.
    14. Brown, Gardner M, Jr & Mendelsohn, Robert, 1984. "The Hedonic Travel Cost Method," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 427-433, August.
    15. Loomis, John B. & Yorizane, Shizuka & Larson, Douglas M., 2000. "Testing Significance Of Multi-Destination And Multi-Purpose Trip Effects In A Travel Cost Method Demand Model For Whale Watching Trips," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(2), pages 1-9, October.
    16. Ward, Frank A. & Loomis, John B., 1986. "The Travel Cost Demand Model As An Environmental Policy Assessment Tool: A Review Of Literature," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(2), pages 1-15, December.
    17. Hynes, Stephen & Ghermandi, Andrea & Norton, Daniel & Williams, Heidi, 2018. "Marine recreational ecosystem service value estimation: A meta-analysis with cultural considerations," Ecosystem Services, Elsevier, vol. 31(PC), pages 410-419.
    18. Armbrecht, John, 2014. "Use value of cultural experiences: A comparison of contingent valuation and travel cost," Tourism Management, Elsevier, vol. 42(C), pages 141-148.
    19. Bordt, Michael, 2018. "Discourses in Ecosystem Accounting: A Survey of the Expert Community," Ecological Economics, Elsevier, vol. 144(C), pages 82-99.
    20. Englin, Jeffrey & Mendelsohn, Robert, 1991. "A hedonic travel cost analysis for valuation of multiple components of site quality: The recreation value of forest management," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 275-290, November.
    21. Capriolo, A. & Boschetto, R.G. & Mascolo, R.A. & Balbi, S. & Villa, F., 2020. "Biophysical and economic assessment of four ecosystem services for natural capital accounting in Italy," Ecosystem Services, Elsevier, vol. 46(C).
    22. Oviedo, José L. & Caparrós, Alejandro & Ruiz-Gauna, Itziar & Campos, Pablo, 2016. "Testing convergent validity in choice experiments: Application to public recreation in Spanish stone pine and cork oak forests," Journal of Forest Economics, Elsevier, vol. 25(C), pages 130-148.
    23. Caparrós, Alejandro & Oviedo, José L. & Álvarez, Alejandro & Campos, Pablo, 2017. "Simulated exchange values and ecosystem accounting: Theory and application to free access recreation," Ecological Economics, Elsevier, vol. 139(C), pages 140-149.
    24. Andrew H. Trice & Samuel E. Wood, 1958. "Measurement of Recreation Benefits: A Rejoinder," Land Economics, University of Wisconsin Press, vol. 34(4), pages 367-369.
    25. Shrestha, Ram K. & Seidl, Andrew F. & Moraes, Andre S., 2002. "Value of recreational fishing in the Brazilian Pantanal: a travel cost analysis using count data models," Ecological Economics, Elsevier, vol. 42(1-2), pages 289-299, August.
    26. Andrew H. Trice & Samuel E. Wood, 1958. "Measurement of Recreation Benefits," Land Economics, University of Wisconsin Press, vol. 34(3), pages 195-207.
    27. Campos, Pablo & Caparrós, Alejandro & Oviedo, José L. & Ovando, Paola & Álvarez-Farizo, Begoña & Díaz-Balteiro, Luis & Carranza, Juan & Beguería, Santiago & Díaz, Mario & Herruzo, A. Casimiro & Martín, 2019. "Bridging the Gap Between National and Ecosystem Accounting Application in Andalusian Forests, Spain," Ecological Economics, Elsevier, vol. 157(C), pages 218-236.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sylla, Marta, 2024. "The application of ecosystem accounting principles at the local scale for a protected landscape: A case study of the Sleza Landscape Park in Poland," Ecosystem Services, Elsevier, vol. 66(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761, Elsevier.
    2. Luís Cruz & Paula Simões & Eduardo Barata, 2014. "Combining Observed and Contingent Travel Behaviour: The Best of Both Worlds?," Notas Económicas, Faculty of Economics, University of Coimbra, issue 40, pages 7-25, December.
    3. Erik Wallentin, 2016. "Choice of the angler," Tourism Economics, , vol. 22(6), pages 1338-1351, December.
    4. Dai, Peichao & Zhang, Shaoliang & Gong, Yunlong & Zhou, Yuan & Hou, Huping, 2022. "A crowd-sourced valuation of recreational ecosystem services using mobile signal data applied to a restored wetland in China," Ecological Economics, Elsevier, vol. 192(C).
    5. Pascoe, Sean & Doshi, Amar & Kovac, Mladen & Austin, Angelica, 2019. "Estimating coastal and marine habitat values by combining multi-criteria methods with choice experiments," Ecosystem Services, Elsevier, vol. 38(C), pages 1-1.
    6. Richard C. Bishop & Kevin J. Boyle, 2019. "Reliability and Validity in Nonmarket Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(2), pages 559-582, February.
    7. Campos, Pablo & Oviedo, José L. & Álvarez, Alejandro & Mesa, Bruno & Caparrós, Alejandro, 2019. "The role of non-commercial intermediate services in the valuations of ecosystem services: Application to cork oak farms in Andalusia, Spain," Ecosystem Services, Elsevier, vol. 39(C).
    8. Doshi, Amar & Pascoe, Sean, 2013. "Investigating the effects of sample heterogeneity on the travel cost model for coral diving in Southeast Asia," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152146, Australian Agricultural and Resource Economics Society.
    9. Becker, Nir & Farja, Yanay & Greenfeld, Asael & Markova-Nenova, Nonka & Wätzold, Frank, 2023. "A blueprint for addressing conflicts between ecotourism and farming from an economic perspective: The case of wintering crane conservation in the Hula Valley in Israel," Ecological Economics, Elsevier, vol. 209(C).
    10. Roberto Martinez-Espineira & Joe Amoako-Tuffour, 2008. "Multi-destination and multi-purpose trip effects in the analysis of the demand for trips to a remote recreational site," EERI Research Paper Series EERI_RP_2008_19, Economics and Econometrics Research Institute (EERI), Brussels.
    11. Pablo Campos & Alejandro Caparrós & José L. Oviedo & Paola Ovando & Alejandro Álvarez & Bruno Mesa, 2019. "Measuring Environmental Incomes: System Of National Accounts And Agroforestry Accounting System Applied To Cork Oak Open Woodlands In Andalusia, Spain," Working Papers 1904, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    12. Jones, Thomas E. & Yang, Yang & Yamamoto, Kiyotatsu, 2017. "Assessing the recreational value of world heritage site inscription: A longitudinal travel cost analysis of Mount Fuji climbers," Tourism Management, Elsevier, vol. 60(C), pages 67-78.
    13. de Frutos, Pablo & Rodríguez-Prado, Beatriz & Latorre, Joaquín & Martínez-Peña, Fernando, 2019. "Environmental valuation and management of wild edible mushroom picking in Spain," Forest Policy and Economics, Elsevier, vol. 100(C), pages 177-187.
    14. Patrick Lloyd-Smith & Ewa Zawojska, 2024. "How stable and predictable are welfare estimates using recreation demand models?," Working Papers 2024-05, Faculty of Economic Sciences, University of Warsaw.
    15. Khuda Bakhsh & Iqra Meshaal & Hudda Riaz, 2020. "Evaluating visitors’ travel demand and recreational values in Kallar Kahar Lake, Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7951-7967, December.
    16. Liao, Chih-Chien & Houston, Jack E., Jr. & Bergstrom, John C., 1989. "Recreation Demand Factor Indices: A Principal Components Analysis," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270497, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Osborn, C. Tim & Hellerstein, Daniel & Rendleman, C. Matthew & Ribaudo, Marc & Keim, Russ, 1994. "A Preliminary Assessment of the Integrated Crop Management Practice," Staff Reports 278730, United States Department of Agriculture, Economic Research Service.
    18. Ribaudo, Marc O. & Hellerstein, Daniel, 1992. "Estimating Water Quality Benefits: Theoretical and Methodological Issues," Technical Bulletins 157031, United States Department of Agriculture, Economic Research Service.
    19. Cavalletti, B. & Di Fabio, C. & Lagomarsino, E. & Ramassa, P., 2020. "Ecosystem accounting for marine protected areas: A proposed framework," Ecological Economics, Elsevier, vol. 173(C).
    20. Lange, Sabine & Campagne, Carole Sylvie & Comte, Adrien & Bank, Emily & Santos-Martín, Fernando & Maes, Joachim & Burkhard, Benjamin, 2022. "Progress on ecosystem accounting in Europe," Ecosystem Services, Elsevier, vol. 57(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:212:y:2023:i:c:s0921800923001684. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.