Double-bounded Dichotomous Choice CVM for an Urban Park; (Case Study: Azadi Park, Shiraz, Iran)

Subject Areas : environmental management

Seyed Abbas Seyed Salehi ¹ , Gholamreza Hajargasht ² , Mohammad Bakhshoodeh ³ , Zeynab SedghiMoradi ⁴

1 - MSc in Agricultural Economics, Shiraz Univeristy, Shiraz, Iran.
2 - Professor of Department of Economics, University of Melbourne, Melbourne, Australia.
3 - - Professor, Agricultural Economics, College of Agriculture, Shiraz University, Shiraz, Iran.
4 - MSc of Economics-Development Economics and Planning, Islamic Azad University-Central Tehran Branch, Tehran, Iran.* (Corresponding Author)

Received: 2014-12-14 Accepted : 2015-06-11 Published : 2017-08-23

Keywords: Shiraz, Azadi Park, Contingent valuation Method, Dichotomous Choice, Bayesian E,

Abstract :

Background and Objective: Today, according to the increasing importance of green space and environment, decision making about environmental policies is growing at the national and international levels. Therefore, there is an urgent need for the information that could be used to promote efficient environmental decision making. Method: In this study, the economic benefits associated with Azadi Park in Shiraz, are estimated using a double-bounded dichotomous choice contingent valuation survey design. The model is estimated applying the Bayesian method. Data for this study was collected with the help of 215 respondants in 2012. Findings: The model was calibrated for the years 1992-1996 and validated for the years 1998-2000. The coefficient of determination (R2) for monthly flow was equal to 0.82 and Nash-Sutcliffe coefficient (Ens) was equal to 0.8 in the calibration period, while in the validation period these coefficients were 0.77 and 0.73, respectively. Conclusion: The results indicate that income, household size, quality and beauty of the park have a significant positive effect and history of visiting has a robust negative effect on the acceptance of bid price. ؤisitors are willing to pay 4390 Rials per person per day on average, resulting in aggregate benefits of 14000 million Rials yearly. The present value of these aggregate benefits equals to 190000 million Rials, using a social discount rate of 7.2 %.

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