Recreation Benefits of Instream Flow: Application to Montana's Big Hole and Bitterroot Rivers

John W. Duffield, Susan M. Ehlers and Thomas C. Brown

No 377643, USDA Miscellaneous from United States Department of Agriculture

Abstract: An important public policy issue in the Western U.S. is the allocation of water between instream uses including recreation and fisheries and consumptive uses such as irrigation. One basis for identifying appropriate levels of instream flows is maximization of net economic benefits. Since markets do not exist for most instream uses, valuation requires use of nonmarket techniques. This study provides a general framework for estimating the recreational value of instream flows. An application to Montana's Big Hole and Bitterroot Rivers is presented. Based on dichotomous choice contingent valuation, the marginal value of instream flows is in the range of $10 to $20 at low flow levels for these rivers. Precision of the estimates is examined through a simulation approach. At some flow levels, allocative gains may be achieved on the study rivers by reallocating water from consumptive to instream uses.

Keywords: Research Research Methods/Statistical Methods; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 37
Date: 1991-01
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Persistent link: https://EconPapers.repec.org/RePEc:ags:usdami:377643

DOI: 10.22004/ag.econ.377643

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