| |
In North Central Florida, there are over 300 documented springs with 19 first magnitude springs. The springs are a vital part of the Suwannee River Basin and important to the riverine ecosystem. However, increasing water use from agricultural production and urbanization has resulted in a reduction in water flows and water quality in the springs. Our study aims to determine the economic value of springs for recreation and environmental services and examine the feasibility of a market-based payment program to achieve water conservation and water quality improvement.
We randomly sampled 500 visitors to four springs in North Central Florida from May 2016 to August 2016, the peak season for spring visitors in the region. We elicited information on visitors’ characteristics and perception for springs. We estimated the consumer surplus at the springs using the travel cost method. The mean consumer surplus per person per trip is $154.40 generated from truncated negative binomial regression with endogenous stratification. We further analyzed the visitors’ responses to the hypothetical price increase using the contingent valuation method. Without reducing the number of trips to the springs, the average entrance fee increase a visitor would be willing to accept is $12.57 per adult, with confidence intervals of [$8.61, $14.89]. It should be noted that the entrance fees provide one way to generate funds for conservation. Relative to respondents’ willingness to pay, the current entrance fee for springs is very low at only $4 per six-person vehicle. Thus, there is substantial potential to use entrance fees to generate funds for water conservation and ecosystem payment program. We hope to generate discussion about policy options to improve water quality and water levels and receive feedback at the 6th biennial UF Water Institute Symposium. |
