Parametric and non-parametric estimation of the willingness to pay for the recreational benefits of a recovery and conservation project in the Salcedo town club complex, Puno, Peru -2012

Abstract

The recreational club village complex, Salcedo, Puno, Perú has characteristics that are characteristic of a public good, since sports and recreational activities are carried out in the open air, without any payment, which leads to an inefficient allocation of resources. The economic benefit derived from the use of the recreational benefits of the complex can represent a significant source of income to carry out recovery and conservation work. The objective of the study is to estimate the average disposition to pay for the recreational benefits that a complex recovery and conservation project would provide, using parametric and non-parametric techniques. A survey was applied to the contingent valuation in a referendum binary format to 361 people who visit the complex regularly for recreational purposes. Specifically, measures of change in welfare were estimated, using the contingent valuation method and parametric and nonparametric estimation techniques. Subsequently, these measures were statistically compared by means of the construction of confidence intervals. The results confirm that there is no significant statistical difference (5%) between the parametric (s / 4.13) and nonparametric Kriström estimates (s / 3.79). This does not happen when compared to Haab & McConnell's nonparametric estimate (s. 2.93). The estimate made with the Haab & McConnell technique undervalues ​​the recreational benefits provided by the village's recreational club complex.