Estimating the Total Economic Value of Cultivated Flower Land in Taiwan

Chin-Huang Huang and Chiung-Hsia Wang
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Chin-Huang Huang: Department of Sport Management, National Taiwan University of Sport, No. 52-16, Sec., 3, Syuefu. Rd., Chiayi County, Putzu City 61363, Taiwan
Chiung-Hsia Wang: Department of Sport Management, National Taiwan University of Sport, No. 52-16, Sec., 3, Syuefu. Rd., Chiayi County, Putzu City 61363, Taiwan

Sustainability, 2015, vol. 7, issue 4, 1-19

Abstract: Many arable land areas have been converted to residential or business uses by Taiwan government authorities, because the low farmland value is associated with the low value of agricultural products. However, agriculture is multifunctional. This study investigates farmland value through Total Economic Value (TEV) for Tianwei Township, which is Taiwan’s largest floral farmland region. Direct use value measures the floral products’ output value and recreational benefit. Recreational benefit from visitors’ flower sightseeing was measured by the travel cost method (TCM). Option value and non-use value, including bequest value and existence value, measure the residents’ willingness to pay through the double-bounded dichotomous contingent valuation method (CVM). The results show that the total floral products’ output is NT$1.441 billion in 2007, recreational benefit is roughly NT$17.757 billion. The intangible value of option value and non-use values are approximately between NT$5 million to 15 million. Therefore, ignoring various values of farmland might lead to an underestimation of farmland value.

Keywords: total economic value; use value; non-use value; travel cost method; contingent valuation method; multifunctionality (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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