Academic journal article UTMS Journal of Economics

Determining Tourism Value of National Park of Urmia Lake in Iran by Family Production Function

Academic journal article UTMS Journal of Economics

Determining Tourism Value of National Park of Urmia Lake in Iran by Family Production Function

Article excerpt

Abstract:

According to the importance of environmental resources in preserving natural ecosystems and human life, preserving these resources and preventing their destruction is necessary. National Park of Urmia Lake in West Azarbayjan province of Iran is the settlement of rare species for different animals and herbs. Every year a lot of internal and foreign passengers and tourists visit this national Park, so the purpose of this study is recreation demand function derivation in National Park of Urmia Lake and determining social and economic factors on demand function. So we used travel cost pattern within the frame work of family production function. Optimal sample volume was 75 tourists and data is related to 2010 summer. Results showed recreation demand function has positive relation with tourists income, quality of National Park and visitor's education, also it has negative relation with recreation shadow price that is according to theoretical expectations. So, quality improvement of National Park as an effective key factor on recreation demand and using suitable pricing policy are recommended.

Key words: family production function, recreation demand function, econometric methods, National Park of Urmia Lake.

Jel Classification: Q51, Q56

(ProQuest: ... denotes formulae omitted.)

INTRODUCTION

In recent years, economic value of environmental resources for various reasons such as necessity of calculating environmental degradation, green national accounts preparation, taxation and suitable charges for controlling and preventing recreation centers destruction has special importance. Humans think environmental resources should be free. Less attention to the price of these sources leads to unsteady policies.

If we want to know the value of one natural source, we need to classify different products, goods and services that are important in valuing. These products are classified in four main groups including regulating products, settlement products, production products and information products (Nezhad 2007). Regulating products include gas regulation, weather regulation, soil regulation and biologic regulation and settlement products include shelter regulation and treasure regulation. At last, information products include aesthetics, recreation, spiritual, historical and ecotourism information and it's the main case of environmental economy. Among environmental resources, national and natural parks play an important role in increasing human welfare. Recreation value as a part of national parks consumption values includes demand for using park, passing free time, making hobby, walking, hiking and aesthetics matters. Study records for valuing environmental resources and demand for using them are related to Hotling studies in 1930 and 1947. This method exactly was used by Klawson in 1967. Then Pazhooyan in 1978 according to theoretical frame work of Gary Backer model introduced recreation function and estimated shadow price of recreation by a two-level method. After Pazhooyan, Bruzelius (1980) showed the value of traveling time is 20 to 53 percent of people's gross wage. Other economists as McKean and Revier (1990) showed the way of calculating shadow price in the condition that person visits some recreation places on his way is partially different from previous ways.

In 2002 Lee and Hun estimated the recreation value of five National Parks in South Korea about 11 dollars per family (The average income of each family is 4600$). Also Mendz (2005) studied the nonmarket value of City Park in Valencia, Spain. Total amount of value has estimated about 11945 peseta in year. In Iran Mojabi and Monavari (2006) according to Klawson model valued Lavizan and Pardisan Parks in Tehran. They derived recreation demand curve by using of maps and visitors social and economic features. Results showed recreation values of Lavizan and Pardisan Parks were 78 and 53 million rials. In Amir Nezhad's (2007) study, payment tendency of each family for preserving Golestan National Park was 172800 rials. …

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