Assessment of Economic Value of Doddabommasandra Lake Using Contingent Valuation Method and Travel Cost Method

Abstract

AbstractLakes are a common example of water ecosystems. A plethora of benefits can be associated to water ecosystems that cater to human consumption and environmental needs alike. The water ecosystem services must be quantified so as to know how much these water services actually cost and what would be the best way to allocate them. The services and benefits from a water ecosystem are clearly of non-market type and it would only be logical to employ non-market valuation techniques to obtain the Total Economic Value. Here, the Willingness to Pay (WTP) for the ecosystem benefits is calculated which reflects the value of the ecosystem. The study aimed at evaluating ecosystem benefits at Doddabommasandra Lake, Bengaluru, India by incorporating Contingent Value Method (CVM) and Travel Cost Method (TCM). The objective of the study was to obtain visitors’ WTP for the ecosystem and available or proposed recreational services at the lake. Survey was carried out on the target demography including regular and occasional visitors. Questionnaire with open-ended questions was used for CVM. Based on the responses, Willingness to Pay for various categories such as Entrance Fees, Offshore Recreational Services, Gymnastics, Vegetation Cover, and Infrastructure was estimated using CVM and averaged. For TCM, a zonal approach was incorporated to develop Demand Curve relating Travel costs with a number of visits. Regression Analysis was conducted to establish a relation between variables such as Travel distance, Travel time, Number of visits per week, and Travel cost.KeywordsEconomic value of waterContingent valuation methodTravel cost methodEcosystem valuationWillingness to payDoddabommasandra Lake