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Recreational Value of the Baltic Sea: a Spatially Explicit Site Choice Model Accounting for Environmental Conditions

Mikolaj Czajkowski (), Marianne Zandersen, Uzma Aslam, Ioannis Angelidis, Thomas Becker, Wiktor Budzinski () and Katarzyna Zagórska ()
Additional contact information
Marianne Zandersen: Department of Environmental Science, Aarhus University
Uzma Aslam: Department of Environmental Science, Aarhus University; Iqra University Islamabad Campus
Ioannis Angelidis: Department of Environmental Science, Aarhus University
Thomas Becker: Department of Environmental Science, Aarhus University

No 2018-11, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: The Baltic Sea plays a significant role for recreational use in the nine littoral countries with more than 70% of the population visiting the coast, representing some 80 million recreation visits annually. Understanding the values associated with coastal recreation and the potential welfare changes of improving the state of the Baltic Sea is important for managing the marine environment. We estimate a spatially explicit travel cost model of coastal site recreation to the Baltic Sea to assess the welfare of accessing individual sites, identify recreational hotspots and simulate the welfare changes resulting from improving environmental and infrastructure conditions. The total benefits associated with the Baltic Sea based recreation amount to 11.4 billion EUR per year with significant variation across sites. Improving water quality and infrastructure boost the recreational value by nearly 9 billion EUR, almost doubling the recreational benefits compared to current conditions.

Keywords: Recreational benefits; Site choice; Random Utility Model; Baltic Sea; Blue Flag (search for similar items in EconPapers)
JEL-codes: L83 Q26 Q51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-env and nep-upt
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2018-11

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