Estimation of the economic value of urban parks in Brazil, the case of the City of Passo Fundo

Abstract

Environmental value estimation can be done using the Contingent Valuation Method (CVM). The main objective of this work was to estimate the economic value of the Gare Urban Park in the City of Passo Fundo/RS- Brazil, through the Willingness To Pay (WTP) of the interviewees for recovery of costs spent to create the park, and annual funds required for maintenance and preservation of the park. Estimation was completed using the CVM, which made it possible for the population to allocate monetary values for improvements and maintenance of the urban park. A total of 513 questionnaires were completed by residents living in 22 sectors of the City of Passo Fundo, resulting in a mean value of WTP in the Brazilian real (R$) of R$30.68. However, the median value was R$16.00. The results of this survey showed an estimated value of R$959,024.00, guaranteeing its maintenance and future preservation, and demonstrating that the population is aware of the importance of maintaining urban parks for a high quality of life. This work demonstrates the application of the CVM that allows for the discussion of new forms of monetary collection to the government for the recovery, preservation and maintenance of urban parks.