The impact of wind turbines on local recreation: Evidence from two travel cost method – contingent behavior studies

Abstract

This paper analyzes recreation demand on the fringe of an urban center in Norway. Specifically, it investigates the potential impact of wind energy projects on local recreation values. Recreation areas near cities are often scarce and under increasing pressures from growing populations with associated real-estate development and expanding or emerging industries. Hence, public planners and policy makers who seek to make optimal resource management decisions need information on all opportunity costs, including those associated with diminished recreational access or quality. Two separate case studies utilize the travel cost method (TCM) to derive baseline recreation demands. Supplementary information from contingent behavior (CB) scenarios provides identification of the impact of wind turbines on recreation benefits. For a unique comparison, one case examines a possible inland wind farm near a popular local mountain area, whereas the other case examines an offshore wind farm near local beaches. Econometric estimations are performed in a joint revealed preference (RP) – stated preference (SP) pseudo-panel count-data framework. The analysis generates baseline consumer surplus estimates in the range of NOK 70–155 per trip and indicates that the wind turbines would have negative impacts that are both statistically and economically significant.