Revealed preference water-based recreational demand and water quality

Task:
-Reviewed all studies citing Bennear, Stavins, and Wagner (2005).
-Searched for studies related to recreational demand by water quality using license purchasing (for
boating, swimming, water skiing, etc).
-Capture only 3 good examples of fishing, otherwise avoided studies of fishing licenses.

Results:

No studies were identified that use water-based recreation licenses to conduct a revealed preference study
valuing water quality improvements, other than those concerned entirely with fishing licenses. Revealed
preference studies seek to use consumer choices data for private goods, such as the decision to purchase a
boat license, to estimate the demand curve for public goods that are not valued in a market, such as
improved water quality.

In an effort to value improved water quality, a number of studies have conducted revealed preference
studies of demand for fishing licenses.

For example, Bennear, Stavins, and Wagner (2005) use panel data on state fishing license sales and prices
to estimate the value of the license, which is driven in part by water quality. This study is one of the
more widely cited studies on the topic.

Dabrowska, Haider, and Hunt (2014) focus more directly on the impact of quality of available fishing
resources on the proportion of the population with angling licenses. This study considers fishery health
and ease of access, and finds that while these factors drive participation decisions, other considerations
such as socio-demographic characteristics are also relevant.

English (2008) address a perceived gap in recreational demand models, which might not consider how
consumer choices are influenced by annual fees such as recreational shellfish licenses. This study
shows[s] that entry and exit behavior, such as the decision whether to purchase an annual license,
contains information about the value of resource use that can be exploited in discrete-choice analysis of
recreation. Only in special circumstances, however, will license-demand data alone be sufficient to
identify a valuation model.

Unfortunately, current literature only includes studies that consider the use of fishing licenses for revealed
preference purposes. Other types of permits or licenses do not seem to have been considered. However, a
few other studies may be useful as part of the literature review in developing this potential approach.

Hammitt, Kyle, and Absher (2007) conduct surveys of campers, focusing on eliciting differences in
concerns and behavior among different types of boat license holders. For example, annual boat permit
holders were substantially more concerned about declines in water quality than temporary permit holders
were.

Lipton (2016) is an example of a contingent valuation study of boat owner willingness-to-pay for water
quality improvements.

Citations
Bennear, L. S., Stavins, R. N., & Wagner, A. F. (2005). Using revealed preferences to infer environmental
benefits: Evidence from recreational fishing licenses. Journal of Regulatory Economics, 28(2), 157-
179.

Dabrowska, K., Haider, W., & Hunt, L. (2014). Examining the impact of fisheries resources and quality
on licence sales. Journal of Outdoor Recreation and Tourism, 5, 58-67.
[Note: could not find full study]

English, E. (2008). A discrete-choice model of annual license demand.WESTERN REGIONAL

RESEARCH, 246.

Hammitt, W. E., Kyle, G. T., & Absher, J. (2007). Camper choice behavior for three proximal sites.

Lipton, Douglas. 2016. The Value of Improved Water Quality to Chesapeake Bay Boaters. Department
of Agriculture and Resource Economics, University of Maryland. Working Paper.
[Note: Grey literature / unpublished]

Possible citations unclear if sufficiently relevant.

Keiser, D. A. (2014). Estimating the Effects of Nutrients on Water-Based Recreational Uses in the United
States: An Instrumental Variables Approach (Job Market Paper).
[Note: Unclear if relevant, could not access full study or abstract for review]

Loomis, J. and J. McTernan. (2014.) Economic Value of Instream Flow for Non-Commercial Whitewater
Boating Using Recreation Demand and Contingent Valuation Methods. Environmental Management.
53:3:510-519.
[Too tangential, not reviewed]

Wennergren, E. B. (1964). Valuing non-market priced recreational resources.Land Economics, 40(3),

303-314.
[Too dated / theoretical, not reviewed]