Valuation of Non-Market Amenities from Environmental Resources

This study values the non-market amenities from two national parks in Northern Pakistan. The paper‘s main aims are to estimate the consumer surplus and recreational value (benefits) of the two Parks; to use these values to determine an optimal entrance fee for visiting these parks; to find out whether improvements in the recreational benefits of these parks would lead to a higher demand for park visitation; and to offer policy recommendations on how overall benefits of the park can be improved. Using individual travel cost model the study finds that the travel cost incurred by individuals is inversely related to park visitation rates. Household income has a positive impact on recreational demand. There is also a significant relationship between the cost of the substitute site and the demand for the park under consideration. The education of visitors bears a positive sign while the age variable has a negative algebraic sign. The dummy variables for male, urban dweller and good perception of visitors about the environmental quality of the park have positive coefficients. The estimated total recreational value of Margalla Hills National Park was Rs. 200.1 million and that of Ayubia National park was Rs. 200.6 million.