Empirical evidence for large nonmarket values for water resources: TCM benefits estimates for Lake Powell

Effects of Reservoir Levels on Arizona National Recreation Area Visitation, Visitor Spending, and Local Economies

“…The use value estimates developed for benefit transfer by Kaval andLoomis (2003), andRosenberger et al (2017) suggest use values in the range of $67-$75 per person per day for water-based activities in the regions that include Lakes Mead and Powell. Earlier estimates from Booker and Colby for the two reservoirs suggest lower estimates, while estimates from Douglas and Johnson (2004) for Lake Powell are higher, in the $106-$240 range. More recent estimates (from 2011) by Neher et al (2013b) estimated a value of $97 per person per day ($112 in 2019 constant dollars).…”

“…Based on survey data from 1997, Douglas and Johnson (2004) estimated a travel cost model to estimate consumer surplus from visits to Lake Powell. They reported results from two regression specifications, with values ranging from $70.83 to $159.36 per trip in 1997 constant dollars.…”

“…(2017), and the High estimate is based on Neher et al. (2013b), while the Very High of a $240.42 per trip benefit is based on Douglas and Johnson (2004) (Table 15).…”

“…The Middle estimate is based on the $75.06 per trip benefit derived fromRosenberger et al (2017) (Table15), while the High estimate is based on the $112 value fromNeher et al (2013b). For Glen Canyon NRA (Lake Powell), the Low estimate is derived fromBooker and Colby (1995), the Middle estimate fromRosenberger et al (2017), and the High estimate is based on Neher et al (2013b), while the Very High of a $240.42 per trip benefit is based onDouglas and Johnson (2004) (Table15).Table16illustrates different types of economic losses from falling reservoir levels. Visitor spending captures lower expenditures in the region.…”

Featured Collection Introduction: Severe Sustained Drought Revisited: Managing the Colorado River System in Times of Water Shortage 25 Years Later — Part I

“…Rather than estimate benefits, they employ benefit transfer methods (Loomis 2015), obtaining per-visit benefit estimates of water-based recreation from other Southwestern sites. Surprisingly, results specific to Lake Powell are now quite old, from 1997 (Douglas and Johnson 2004). Booker and Colby's (1995) estimates for Lake Mead are derived from studies conducted in the 1980s.…”