There are many tourist attraction sites in Ethiopia. Woliso town, is located in Oromia Region, South west Shewa Zone, on the way from Addis Ababa to Jimma 114 km away from Addis Ababa. The study was conducted on the economic valuation of trecreational benefit of the Negash lodge (Woliso town) recreational by using the travel cost method.As the result of the study indicated that the demand for Negash logde recreational site has been increasing with the increase of monthly average income of visitors and decrease with the increase of individual visitors travel cost. The study analyzed Economic Valuation of the recreational benefit of Negesh lodge (Woliso town) outdoor recreational by using the travel cost method .
Both primary & secondary data types were used. The primary data was collected from sample size town residents and visitors with questioner and face to face interview. For analysis of collected data Both Descriptive Statistical and Econometric analysis truncated Poisson model) were employed.
Table of Contents
1. CHAPTER ONE: INTRODUCTION
1.1 Back ground of the study
1.2 statement of the problem
1.3 Objective of the study
1.3.1 General objectives
1.3.2 Specific objectives
1.4 Hypothesis
1.5 Significance of the study
5.6 Scope and Limitations of the Study
5.7 Organization of the Paper
2. CHAPTER TWO: LITERATURE REVIEW
2. Theoretical Frame work
2.1.1 The Need for Environmental Valuation
2.1.2 Economic Approach to Environmental Valuation
2.1.3 Classification of values of environmental resource
2.1.4 General approach Method of valuing environment resource
2.1.5 Travel Cost Method (TCM) of Valuing Environmental Resources
2.2 Empirical Literature review
2.2.1 Application of TCM in valuing Recreation site in Ethiopia
3. CHAPTER THREE
3.1 METHODOLOGY OF THE STUDY
3.2 Site Description
3.3 Research methods and data resource
3.3.1 Data sources and data collection techniques
3.3.2 Sampling method and sample size.
3.3.5 Variables Definition and their expected signs
4. CHAPTER ROUR: RESULTS AND DISCUSSIONS
4.1. Descriptive analysis
4.1.2. Number of population response to visitation
4.2.1. Demand function and recreational benefit estimation
5. CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS
5.1 CONCLUSIONS
5.2 RECOMMENDATIONS
Research Objectives and Themes
This study aims to conduct an economic valuation of the recreational benefits provided by the Negash Lodge in Woliso, Ethiopia, using the Travel Cost Method (TCM) to determine the site's consumer surplus and total economic value to visitors.
- Economic valuation of non-market environmental resources.
- Application of the Individual Travel Cost Method (ITCM) and truncated Poisson models.
- Estimation of annual recreational benefits and consumer surplus for Negash Lodge.
- Analysis of factors influencing visitation demand, such as travel costs and socio-economic variables.
- Provision of policy-relevant recommendations for resource management and site planning.
Excerpt from the Book
2.1.3 Classification of values of environmental resource
In the environmental economics literature we can see several ways of classifying values of environmental resources. (Freeman, 1979), and (Mitchell and Carson,1989) have presented categorizations of resource benefits from environmental improvements perspectives.
(Freeman ,1993) has categorized environmental service flows in terms of their different sets of features: one way of classifying environmental resource service flows is according to the legal and administrative responsibilities for controlling the pollution or damage that would occur on different environmental resources (e.g. air, water, fisheries, forests, etc); another way of categorizing environmental resource benefits is in terms of their effects on humans either directly (e.g., on human health) or indirectly (e.g., through impacts on ecosystem and inanimate systems).
Finally, environmental resource benefits are grouped according to their effects on the market system (e.g., in the form of changes in incomes to producers and impacts on consumers in the form of changes in the availability of and prices of marketed goods and services).
Loomis et al. (1987) classified natural resource values by their use values and non-use values. The analysis of total economic benefits of environmental resources can in general be broken Down into two categories: use values and non-use values.
Use value- These are the value that an individual or the society places on environmental good for direct or indirect benefits that they derive from using them. For this reason they are classified as direct use, indirect use and option value.
Direct use- The value that given for the benefit obtained from using the resources directly either through physical extraction or with no extraction. Examples of use value include the use of water for transportation, drinking and recreational activities such as swimming and others. This component of value results in the decline in the quantity or the quality of the resource available (Freeman, 1993).
Summary of Chapters
CHAPTER ONE: INTRODUCTION: This chapter introduces the study, covering the background of environmental valuation, the problem statement regarding the lack of economic estimation for the Negash Lodge, and the specific objectives of the research.
CHAPTER TWO: LITERATURE REVIEW: This section provides the theoretical framework for environmental valuation and reviews empirical literature regarding the application of the Travel Cost Method (TCM) in various countries and specifically in Ethiopia.
CHAPTER THREE: This chapter outlines the methodological framework, including site description, data collection techniques, model specification, and the definitions of variables used in the econometric analysis.
CHAPTER ROUR: RESULTS AND DISCUSSIONS: This section presents the descriptive statistics of the survey data and discusses the econometric results obtained from the truncated Poisson model to estimate the demand and benefits of the lodge.
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS: This final chapter summarizes the research findings, highlighting the economic value of the site, and provides recommendations for site management and future research.
Keywords
Recreational benefit, Travel cost method, Truncated model, Economic valuation, Negash lodge, Consumer surplus, Environmental resources, ITCM, Visitation rate, Resource management, Ethiopia, Demand function, Poisson regression, Socio-economic factors, Outdoor recreation.
Frequently Asked Questions
What is the primary focus of this study?
The study focuses on the economic valuation of the recreational benefits provided by the Negash Lodge in Woliso, Ethiopia, aiming to quantify its value using scientific economic methods.
Which methodology does the author utilize?
The author employs the Individual Travel Cost Method (ITCM) and statistical analysis using a truncated Poisson regression model.
What are the key themes addressed in the research?
The research explores environmental economics, the classification of non-market values, the demand for recreational services, and the management of natural resource sites.
What is the core objective of the research?
The objective is to estimate the total economic benefit and consumer surplus associated with the Negash Lodge to assist policymakers in sustainable site management.
What does the main body of the text cover?
The main body includes a literature review on environmental valuation, the methodology and model specification for the study, and an analysis of the survey results regarding visitor characteristics and recreational demand.
Which keywords best characterize this work?
Key terms include Recreational benefit, Travel cost method, Truncated model, Consumer surplus, and Environmental resource valuation.
How does family size affect visitation demand according to the findings?
The study finds a negative and significant relationship between family size and the number of visits, suggesting that individuals from smaller families are more likely to visit the site frequently.
How does the author propose to improve revenue for Negash Lodge?
The author recommends that management adjust entrance fees and implement a more structured payment system for services to better capture the site's true economic value and reinvest in quality improvements.
What is the relationship between income and visitation?
The results show a positive and significant relationship between a visitor's average income and the number of visits, indicating that higher-income individuals are more likely to participate in recreational activities at the lodge.
Why is the Truncated Poisson model chosen for the analysis?
The model is chosen because the dependent variable (number of visits) consists of count data (integers) and is truncated, as the sample only includes individuals who actually visited the site.
- Arbeit zitieren
- Alemu Lemi (Autor:in), 2018, Economic Valuation of the Recreational Benefit of Negesh Lodge in Woliso, Oromia Regional State, Ethiopia, München, GRIN Verlag, https://www.grin.com/document/465990
