Economics of including Recreation as a Purpose of Eastern Water Projects

Abstract

C HARACTERISTICALLY water resource development projects have been designed and justified for such useful purposes as providing hydropower, navigation, flood control and irrigation benefits. This has now been altered, most notably by Senate Document 97 and its supplement dealing with recreation benefits.' Among the major changes in policy is the recognition and full consideration of outdoor recreation as a primary purpose in water resource development project formulation and evaluation. The most immediate consequence of this is that benefits of recreation opportunities may now be included in project planning and justification considerations. The time has passed when we can profitably debate whether outdoor recreation should properly be acknowledged as a rightful use of natural resources. The propriety of this resource use is no longer an issue. The chief reasons for the expansion of interest accorded not only waterbased recreation activities but nearly all other types as well, stem in large part from changes which are occurring within our society. As we experience such things as increased per capita income, population growth, more leisure time, increased mobility, and continued urbanization, activities such as outdoor recreation take on greater significance among our wants and preferences. These changes are manifested in the changes in demand for outdoor recreation resources. The usual statements of demand for recreation refer to the demand for outdoor recreation facilities at zero prices, and are in this sense simply statements of attendance. While attendance information is useful, large numbers by themselves do not give us complete indications of value which have utility for comparing this use of resources with alternatives. The increased demand for recreation should, ceteris paribus, increase the value of resources which can be efficiently used for such purposesincluding water resources. To the extent that such is the case, this implies that an increase in investment in outdoor recreation facilities is de-