Comparing estimates of market and non-market values for products of a given land base

Published in 1977

Given that demand and value estimates for outdoor recreation activities have been made for a ll regions in Arizona, this study examines how to estimate empirically comparable values of an alternative market priced land-use product from the same land resource base. Cattle grazing for beef calf production was selected as the alternative use for this conceptual examination and empirical case study. A theoretical framework is constructed for product comparability with respect to whom the social benefits accrue. A statistical demand curve for beef is estimated from which statewide changes in consumer surplus values are generated. The statewide changes in consumer surplus values are disaggregated into estimates for Arizona Game and Fish Department Regions and estimates per square mile. The consumer surplus values for beef are compared to consumer surplus values for outdoor recreation activities . Producer surplus values are estimated for cattle production but are not relevant for outdoor recreation. The results show high consumer surplus values for outdoor recreation in areas close to large population centers where demand is great. The values for outdoor recreation are equal to or larger than cattle production values in these areas but smaller than for cattle production in a ll other areas.

AZU_TD_BOX114_E9791_1977_224.pdf (1.96 MB)

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