Recreation Use Values for Water-Based Recreation

Outdoor recreation is an important and growing activity worldwide. Water-based outdoor recreation is a subset that includes various activities such as fishing, boating, and swimming. While a large portion of water-based recreation is either free or provided at administratively set minimal entrance fees, these activities still involve significant economic value in aggregate. Because many water-based recreation activities do not have market prices, economists have developed nonmarket valuation methods to estimate the full scope of economic values to participants associated with these activities. Estimates of the economic value of water-based recreation are important in water resource management. While water resource infrastructure investment decisions typically include the economic value of recreation, periodic evaluation of infrastructure operations after construction may not. Re-evaluation of operations is particularly important if rapid changes in future conditions such as drought or changes in recreational demand occur. Because developing original site-based estimates of economic value requires significant effort, it is important to understand the general economic value of specific water-based recreational activities and methods used to transfer benefit estimates from existing studies to other sites.