Lake Powell management alternatives and values: CVM estimates of recreation benefits

Abstract

This paper presents data analyses based on information gathered from a recreation survey distributed during the spring of 1997 at Lake Powell. Recreation-linked management issues are the foci of the survey and this discussion. Survey responses to contingent valuation method (CVM) queries included in the questionnaire quantify visitor recreation values. The CVM estimates of the benefits provided by potential resource improvements are compared with the costs of the improvements in a benefit-cost analysis. The CVM questions covered three resources management issues including water quality improvement, sport fish harvest enhancement, and archeological site protection and restoration. The estimated benefits are remarkably high relative to the costs and range from $6 to $60 million per year. The dichotomous choice format was used in each of three resource CVM question scenarios. There were two levels of enhancement for each resource. There are, therefore, several consistency requirements—some of them unique to the dichotomous choice format—that the data and benefit estimates must satisfy. These consistency tests are presented in detail in the ensuing analysis.