Measuring Economic Value of TIS Abay Waterfalls: Comparison of Contingent Valuation and Travel Cost Methods

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One aspect of sustainable development is the need to retain an "acceptable" level of environmental quality and to conserve nature's assets. Environmental economics literature has therefore developed to encompass a range of monetary valuation methods and techniques de Signed to value the spectrum of environmental goods and services. The task of monetary valuation of the environment is made more complex by a number of problems. These include the fact that often environmental effects will have no natural units of measurement, and even where physical indices are available these must be related to individual perceptions. Be Sides, due to their externality and public good characteristics environmental effects do not often directly show up in markets. Extensive use of monetary valuation methods combined with technical improvements in techniques have resulted a large literature that consists a wide range of valuation case studies. There is now a wide range of application of the contingent valuation method (CVM) in developing Countries. Most of the studies are concerned with fresh water investments and sanitation. However, there are fewer studies that look at forest values, outdoor recreation, sanctuaries and parks. Of course, few limited studies have applied different techniques in valuing different environmental resources. This indicates that both in developed and developing countries more emphasis has been given to the reliability of contingent valuation method (CVM) . This study has attempted to estimate recreation value of Tis Abay Water Falls which is considered nature based tourist attraction area by applying contingent valuation method (CVM) and the travel cost approach(TCM) and evaluated the extent whether different techniques for valuing a given environmental charge will produce similar results. The conflicting interest around Tis Abay Water Falls resource is the background for this study. Tis Abay II Hydro Power Project is being implemented with the objective of increasing the supply of energy, where as the Tourism Master Plan proposed establishment of Tis Abay national park to enhance tourism industry. However, there is a trade-off between these two proposals, because the implementation of Hydro - electric power project will necessarily involve a significant reduction in the flow of water falls and that may not sustain their aquatic diversity and value of tourism. Though, there is significant difference, both methods have come with substantial consumers' surplus of Tis Abay Wate Falls Park which shows high potential tourism value of the resource. This might help to consider environmental policy issues and the need for the simultaneous pursuit of multifarious development objectives which are often in conflict with each other.



Economic Value of Tis bay Waterfalls, Travel Cost Methods, Measuring Economic