Nonparametric estimation of compensatory variation of recreational service consumers in a biosphere reserve in Mexico

Abstract

Objective: To estimate and compare the compensating variation associated with recreational access to the La Michilía Biosphere Reserve in Durango, in order to support informed decision-making regarding its management and conservation.

Design/methodology/approach: A questionnaire was designed and a probabilistic survey was applied to 148 individuals in four communities adjacent to the reserve. The contingent valuation method was employed, both in its parametric and non-parametric forms, to estimate the compensating variation using the Kriström and Turnbull approaches.

Results: The average compensating variation obtained using the non-parametric Turnbull method was MX$41.33 per respondent, while the logistic model yielded MX$52.30. These results indicate a positive valuation of the reserve’s recreational services by the local population. It is concluded that implementing an access fee could be a viable financing strategy for the effective management of La Michilía.

Limitations on study/implications: The positive skewness in the distribution of the compensating variation affects the estimation using the Kriström approach, particularly the Spearman-Karber variant, by extrapolating values beyond the offered price range, which may limit its empirical applicability.

Findings/conclusions: This study demonstrates a significant economic valuation of the reserve’s recreational services by local residents. The estimated compensating variation supports the possibility of establishing an access fee scheme that would enhance the reserve’s management, promote its conservation, and contribute to the sustainable development of surrounding communities.