Description of valuation study conducted – DEMAND

We concentrate on the public good Recreational services of forests in the context of the newly established Geopark Ralsko. We touch the other public good Biodiversity conservation in the context of restricting or enhancing the recreational potential/function of forests only (particularly in Geopark Ralsko). In the underdeveloped region it is particularly important to express the value of the public good not only to show its social importance as well as the opportunity of its provision for the local economy. We assess the demand from the perspective of local people (hedonic valuation based on the property prices) and from the perspective of urban visitors (travel cost method).

Because of the low season period in the time of gathering data and providing the valuation assessment we decided to conduct a hedonic valuation. In addition we have adopted results of a study (Melichar, 2007) – Travel Cost Model for the appraisal of recreational function of forests in Jizera mountains (about 30 km north-east from our region, 50 km by car).

PG valuation results – DEMAND

We measure the change of the price in respect to distance from the forest. We use two measurements of distance both on 5 point scale; in the first case we divided the town in 5 zones purely from a map; in the second case we assessed on the spot the real accessibility of the Geopark forest. The one point on the scale corresponds to roughly 200-300 meters (the furthest place in the town is about 1500 m from the GEOPARK forest).  Using the first distance measurement (zonal) each ≈250 meters further form the forest represent loss of 95 thousand crowns (€3548). Applying the other (corrected) measurement of the distance, the loss per ≈250 is much smaller 25 thousand crowns (€834). These figures link to the average property (dwelling house & garden) in the town i.e. 320 m2 of the utilized (living) area and 756 m2 of the parcel (house and garden).

We excluded social housing and socially excluded areas from the analysis. We were not able to distinguish credibly if the house is for permanent dwelling or recreation – both are included in the sample.

We used two simple models – linear and log-linear. We included dummies for the presence of garage (partly taken from the cadastral records and the verified and completed on the spot). The methods reflects the local value of forests while the travel cost method reveals rather preferences of people living outside the area.

 

Description of valuation study conducted – SUPPLY

The landscape of the National Geopark Ralsko (NGR) is rich on natural values. While some spots were damaged due to the presence of the Soviet army (1968-1990) the other parts of the former military area were saved from overused and conserved.  Most of the area is covered of forests which offer great opportunity for recreation of urban visitors and consequently, when exploited by local business. We consider recreational service of forest landscape depending on the possibility to access it which in turn means the investment in and maintenance of the respective infrastructure like hiking trails, bike and horse riding routes, educational paths, parking and rest places etc. In our calculations these are integral and substantial parts of the calculated costs of the public good provision. In the case of biodiversity conservation we adopted the approach of income forgone due to restriction on forest operations, namely logging. These costs are compared with forest-environmental payments of the Czech RDPs for  2007 to 2013 and 2014-2020.

PG valuation results – SUPPLY

The study uses mix approaches including

    1. a) calculation of investment and maintenance costs of forest recreational infrastructure

b) simulation of a supply curve

c) an assessment of the income foregone due to conservation restrictions in the protected areas.

a) and c) were partly based on interviews with the PG providers (Military Forests and Estates (VLS), Municipal Forests of Doksy, Administration of Protected Landscape Area Kokorinsko – Machuv kraj and National Geopark Ralsko (NGR)).

 

 

References

Melichar, J. (2007) Aplikace metody cestovních nákladů v oblasti Jizerských hor (An application of the Travel Cost Method in Jizera Mountains). Doctoral thesis. Prague School of Economics. Pp 150

Lansford, N. H, Jones, L. L (1995) Recreational and Aesthetic Value of Water Using Hedonic Price Analysis. Journal of Agricultural and Resource Economics 20(2): 341-355

Tyrvainen, L. (1997) The amenity value of the urban forest: an application of the hedonic pricing method. Landscape and Urban Planning 37: 211-222

Waltert F., Schläpfer F. (2010) Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies. Ecological Economics 70 (2010) 141–152