IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i8p6468-d1120554.html
   My bibliography  Save this article

Economic Valuation of Lake Tana: A Recreational Use Value Estimation through the Travel Cost Method

Author

Listed:
  • Atalel Wubalem

    (Department of Agricultural Economics, Bahir Dar University, Bahir Dar P.O. Box 79, Ethiopia)

  • Teshale Woldeamanuel

    (Department of Natural Resource Economics and Policy, Hawassa University, Hawassa P.O. Box 5, Ethiopia)

  • Zerihun Nigussie

    (Department of Agricultural Economics, Bahir Dar University, Bahir Dar P.O. Box 79, Ethiopia)

Abstract

Lake Tana is a well-known tourist spot in northern Ethiopia that lures both domestic and foreign tourists. The lake’s value is still underrated, despite the site’s immense potential for recreation and tourism. In this study, the recreational value of Lake Tana is estimated, and the consumer characteristics associated with recreational demand are analyzed. The study employs a Zero-Truncated Poisson (ZTP) regression model for data generated by the Individual Travel Cost Method (ITCM) and draws information from 1094 on-site surveys. According to ZTP regression results, variables that are significantly and positively associated with demand for Lake Tana recreation include the monthly income and age of the visitors and their preference for other recreation destinations such as Tis-Abay and Gondar Fasiledes Royal Castle. However, respondents’ leisure time, overall cost, and residential distance from the recreational site are all negatively associated with the demand for recreation. It is also evident that Lake Tana is endowed with a wealth of attributes, ranging from natural beauty to ancient religious and cultural heritages, making the lake a highly desirable recreation destination. According to the estimation, Lake Tana has a yearly recreational value of around USD 68.5 million. However, it also demonstrates that if lake settings were to improve in quality, the value of Lake Tana would rise considerably, reaching USD 151 million. The value of sentimental attachment implies that determining Lake Tana’s recreational value is a key element in the resource’s sustainable utilization and management. To make greater use of Lake Tana’s recreational amenities, however, uncontrolled waste disposal, favorable recreation facilities, and the spread of water hyacinth should be addressed immediately. Furthermore, it is imperative to maintain the lake’s diverse attributes, as the integration of these attributes is what gives the lake its primary appeal.

Suggested Citation

  • Atalel Wubalem & Teshale Woldeamanuel & Zerihun Nigussie, 2023. "Economic Valuation of Lake Tana: A Recreational Use Value Estimation through the Travel Cost Method," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6468-:d:1120554
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/8/6468/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/8/6468/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andy Jones & Jan Wright & Ian Bateman & Marije Schaafsma, 2010. "Estimating Arrival Numbers for Informal Recreation: A Geographical Approach and Case Study of British Woodlands," Sustainability, MDPI, vol. 2(2), pages 1-18, February.
    2. Rolfe, John & Gregg, Daniel, 2012. "Valuing Beach Recreation Across a Regional Area: The Great Barrier Reef in Australia," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124433, Australian Agricultural and Resource Economics Society.
    3. W. Douglass Shaw & Peter Feather, 1999. "Possibilities for Including the Opportunity Cost of Time in Recreation Demand Systems," Land Economics, University of Wisconsin Press, vol. 75(4), pages 592-602.
    4. van Zanten, Boris T. & Koetse, Mark J. & Verburg, Peter H., 2016. "Economic valuation at all cost? The role of the price attribute in a landscape preference study," Ecosystem Services, Elsevier, vol. 22(PB), pages 289-296.
    5. Michael D. Creel & John B. Loomis, 1990. "Theoretical and Empirical Advantages of Truncated Count Data Estimators for Analysis of Deer Hunting in California," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 434-441.
    6. Brida, Juan Gabriel & Meleddu, Marta & Tokarchuk, Oksana, 2017. "Use value of cultural events: The case of the Christmas markets," Tourism Management, Elsevier, vol. 59(C), pages 67-75.
    7. McConnell, Kenneth E., 1985. "The economics of outdoor recreation," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 15, pages 677-722, Elsevier.
    8. Na Zhao & Hui Wang & Jingqiu Zhong & Dongqi Sun, 2022. "Assessment of Recreational and Cultural Ecosystem Services Value of Islands," Land, MDPI, vol. 11(2), pages 1-17, January.
    9. Yiru Guo & Yan Hu & Ke Shi & Yuriy Bilan, 2020. "Valuation of Water Resource Green Efficiency Based on SBM–TOBIT Panel Model: Case Study from Henan Province, China," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    10. Massimo Filippini & William Greene & Adan L. Martinez-Cruz, 2018. "Non-market Value of Winter Outdoor Recreation in the Swiss Alps: The Case of Val Bedretto," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(3), pages 729-754, November.
    11. Paulo Anciaes, 2022. "Revealed preference valuation of beach and river water quality in Wales," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 11(1), pages 75-94, January.
    12. Englin, Jeffrey & Shonkwiler, J S, 1995. "Estimating Social Welfare Using Count Data Models: An Application to Long-Run Recreation Demand under Conditions of Endogenous Stratification and Truncation," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 104-112, February.
    13. P. Poor & Jamie Smith, 2004. "Travel Cost Analysis of a Cultural Heritage Site: The Case of Historic St. Mary's City of Maryland," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 28(3), pages 217-229, August.
    14. Xueqin Zhu & Ekko Ierland, 2012. "Economic Modelling for Water Quantity and Quality Management: A Welfare Program Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(9), pages 2491-2511, July.
    15. Almaktar, Mohamed & Shaaban, Mohamed, 2021. "Prospects of renewable energy as a non-rivalry energy alternative in Libya," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    16. Tardieu, Léa & Tuffery, Laëtitia, 2019. "From supply to demand factors: What are the determinants of attractiveness for outdoor recreation?," Ecological Economics, Elsevier, vol. 161(C), pages 163-175.
    17. Nitanan Koshy Matthew & Ahmad Shuib & Nitya Ganeshwaari Raja Gopal & Goh Ie Zheng, 2022. "Economic Value of Recreation as an Ecosystem Service in Ayer Keroh Recreational Forest, Malaysia," Sustainability, MDPI, vol. 14(9), pages 1-13, April.
    18. 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).
    19. Lagergren, Fredrik & Jönsson, Anna Maria, 2017. "Ecosystem model analysis of multi-use forestry in a changing climate," Ecosystem Services, Elsevier, vol. 26(PA), pages 209-224.
    20. Léa Tardieu & Laetitia Tufféry, 2019. "From supply to demand factors : what are the determinants of attractiveness for outdoor recreation?," Post-Print hal-02883545, HAL.
    21. Athanasia-Tatiana Stamou & Peter Rutschmann, 2018. "Pareto Optimization of Water Resources Using the Nexus Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(15), pages 5053-5065, December.
    22. R. Craig Layman & John R. Boyce & Keith R. Criddle, 1996. "Economic Valuation of the Chinook Salmon Sport Fishery of the Gulkana River, Alaska, under Current and Alternate Management Plans," Land Economics, University of Wisconsin Press, vol. 72(1), pages 113-128.
    23. Pang, Xi & Nordström, Eva-Maria & Böttcher, Hannes & Trubins, Renats & Mörtberg, Ulla, 2017. "Trade-offs and synergies among ecosystem services under different forest management scenarios – The LEcA tool," Ecosystem Services, Elsevier, vol. 28(PA), pages 67-79.
    24. McCartney, Matthew & Alemayehu, T. & Shiferaw, A. & Awulachew, Seleshi Bekele, 2010. "Evaluation of current and future water resources development in the Lake Tana Basin, Ethiopia," IWMI Research Reports H042875, International Water Management Institute.
    25. Saúl Torres-Ortega & Rubén Pérez-Álvarez & Pedro Díaz-Simal & Julio Manuel De Luis-Ruiz & Felipe Piña-García, 2018. "Economic Valuation of Cultural Heritage: Application of Travel Cost Method to the National Museum and Research Center of Altamira," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    26. Anna Alberini & Alberto Longo, 2006. "Combining the travel cost and contingent behavior methods to value cultural heritage sites: Evidence from Armenia," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 30(4), pages 287-304, December.
    27. Jeffrey Englin & Trudy Cameron, 1996. "Augmenting travel cost models with contingent behavior data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(2), pages 133-147, March.
    28. Richard Mulwa & Jane Kabubo-Mariara & Wilfred Nyangena, 2018. "Recreational value and optimal pricing of national parks: lessons from Maasai Mara in Kenya," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 7(2), pages 204-222, April.
    29. K. G. Willis & G. D. Garrod, 1991. "An Individual Travel‐Cost Method Of Evaluating Forest Recreation," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 33-42, January.
    30. Rainer Winkelmann, 2008. "Econometric Analysis of Count Data," Springer Books, Springer, edition 0, number 978-3-540-78389-3, April.
    31. Eva Vicente & Pablo de Frutos, 2011. "Application of the travel cost method to estimate the economic value of cultural goods: Blockbuster art exhibitions," Hacienda Pública Española / Review of Public Economics, IEF, vol. 196(1), pages 37-63, january.
    32. Andrew H. Trice & Samuel E. Wood, 1958. "Measurement of Recreation Benefits," Land Economics, University of Wisconsin Press, vol. 34(3), pages 195-207.
    33. Pueyo-Ros, Josep & Garcia, Xavier & Ribas, Anna & Fraguell, Rosa M., 2018. "Ecological Restoration of a Coastal Wetland at a Mass Tourism Destination. Will the Recreational Value Increase or Decrease?," Ecological Economics, Elsevier, vol. 148(C), pages 1-14.
    34. Yrgalem Desta & Mekonnen Bersisa, 2019. "Recreational Use Value of Lakes-An Application of Travel Cost Method-A Case of Lake Ziway," International Journal of Environmental Sciences & Natural Resources, Juniper Publishers Inc., vol. 19(4), pages 105-111, May.
    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. Suliman Yusif & Yukun Cao & Abdelazim Eissa & Elsamoal Elzaki, 2023. "Economic Assessment for the Recreation Value of Al-Sunut Forest Reserve in Khartoum State, Sudan," Sustainability, MDPI, vol. 15(24), pages 1-18, December.

    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. Mani Nepal & Rajesh Kumar Rai & Saudamini Das & Laxmi Dutt Bhatta & Rajan Kotru & Madan Singh Khadayat & Ranbeer Singh Rawal & G. C. S. Negi, 2018. "Valuing Cultural Services of the Kailash Sacred Landscape for Sustainable Management," Sustainability, MDPI, vol. 10(10), pages 1-19, October.
    2. Amoako-Tuffour, Joe & Martınez-Espineira, Roberto, 2008. "Leisure and the Opportunity Cost of Travel Time in Recreation Demand Analysis: A Re-Examination," MPRA Paper 8573, University Library of Munich, Germany.
    3. Lienhoop, Nele & Ansmann, Till, 2011. "Valuing water level changes in reservoirs using two stated preference approaches: An exploration of validity," Ecological Economics, Elsevier, vol. 70(7), pages 1250-1258, May.
    4. Richard Melstrom, 2014. "Valuing historic battlefields: an application of the travel cost method to three American Civil War battlefields," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(3), pages 223-236, August.
    5. Jamal Othman & Yaghoob Jafari, 2019. "Economic Valuation of an Urban Lake Recreational Park: Case of Taman Tasik Cempaka in Bandar Baru Bangi, Malaysia," Sustainability, MDPI, vol. 11(11), pages 1-15, May.
    6. Maria Giovanna Brandano & Marta Meleddu, 2021. "Together or not? Spill-over effects of cultural goods displacement," Tourism Economics, , vol. 27(6), pages 1202-1220, September.
    7. Chin†Huang Huang, 2017. "Estimating the environmental effects and recreational benefits of cultivated flower land for environmental quality improvement in Taiwan," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 29-39, January.
    8. Hynes, Stephen & Burger, Ryan & Tudella, João & Norton, Daniel & Chen, Wenting, 2022. "Estimating the costs and benefits of protecting a coastal amenity from climate change-related hazards: Nature based solutions via oyster reef restoration versus grey infrastructure," Ecological Economics, Elsevier, vol. 194(C).
    9. John C. Whitehead & Douglas Simpson Noonan & Elizabeth Marquardt, 2014. "Criterion and predictive validity of revealed and stated preference data: the case of “Mountain Home Music†concert demand," Economics and Business Letters, Oviedo University Press, vol. 3(2), pages 87-95.
    10. Czajkowski, Mikołaj & Giergiczny, Marek & Kronenberg, Jakub & Tryjanowski, Piotr, 2014. "The economic recreational value of a white stork nesting colony: A case of ‘stork village’ in Poland," Tourism Management, Elsevier, vol. 40(C), pages 352-360.
    11. Egan, Kevin & Herriges, Joseph, 2006. "Multivariate count data regression models with individual panel data from an on-site sample," Journal of Environmental Economics and Management, Elsevier, vol. 52(2), pages 567-581, September.
    12. K. Willis & J. Snowball & C. Wymer & José Grisolía, 2012. "A count data travel cost model of theatre demand using aggregate theatre booking data," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(2), pages 91-112, May.
    13. Rulleau, Bénédicte & Dehez, Jeoffrey & Point, Patrick, 2011. "The tourist recreational demand for coastal forests: Do forests really matter?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 92(3).
    14. Katsuhito Nohara & Masaki Narukawa & Akira Hibiki, 2021. "Using contingent behavior analysis to estimate benefits from coral reefs in Kume Island, Japan: A Poisson-inverse Gaussian approach with on-site correction," TUPD Discussion Papers 1, Graduate School of Economics and Management, Tohoku University.
    15. Pascoe, Sean, 2019. "Recreational beach use values with multiple activities," Ecological Economics, Elsevier, vol. 160(C), pages 137-144.
    16. Rowan, Emma & Longo, Alberto, 2009. "Enriching Stakeholder participation through Environmental Valuation; Eliciting Preferences for a National Park Designation in Northern Ireland," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51071, Agricultural Economics Society.
    17. Simões, Paula & Barata, Eduardo & Cruz, Luís, 2013. "Joint estimation using revealed and stated preference data: An application using a national forest," Journal of Forest Economics, Elsevier, vol. 19(3), pages 249-266.
    18. Bénédicte Rulleau & Jeoffrey Dehez & Patrick Point, 2011. "The tourist recreational demand for coastal forests: Do forests really matter?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(3), pages 291-310.
    19. Hesseln, Hayley & Loomis, John B. & González-Cabán, Armando, 2004. "Comparing the economic effects of fire on hiking demand in Montana and Colorado," Journal of Forest Economics, Elsevier, vol. 10(1), pages 21-35, May.
    20. Liu, Hongxiao & Hamel, Perrine & Tardieu, Léa & Remme, Roy P. & Han, Baolong & Ren, Hai, 2022. "A geospatial model of nature-based recreation for urban planning: Case study of Paris, France," Land Use Policy, Elsevier, vol. 117(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:gam:jsusta:v:15:y:2023:i:8:p:6468-:d:1120554. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.