Costs And Benefits Of Developing Nature Areas:
Regional Versus National Impact
Author(s)
E. J. Bos & J. M. Vleugel
Abstract
Developing nature areas generates various benefits for the economy. The main
benefits concern growing incomes for the recreation sector (hotels, camping,
restaurants, etc.), higher prices of houses, etc. In this study the costs and benefits
of developing nature in a rural area in the south-east of the Netherlands have
been analyzed. Our study revealed that effects for the regional economy are
considerable. On the national level, however, these effects appear to be
negligible. This is due to the fact that on an interregional level the effects largely
balance each other out. Thus, nature development in a certain region will
increase the number of visitors to that region, but at the expense of other regions.
In other words, due to substitution effects the net interregional effect of nature
development on recreational spending is negligible. This raises the question
whether the national government should finance regional nature development.
Keywords: economic valuation, regional impact, national impact.
1 Introduction
Cost-benefit analysis (CBA) has become an important tool for supporting policy
decision making on public investments project such as infrastructure and land
use scenarios. In this article, the impact of a nature development scenario in the
Netherlands will be elaborated, first from a regional perspective and next from a
national perspective.
The question that will be elaborated on in this paper is whether the scale at
which the evaluation of such a regional investment plan takes place has an
impact on the outcome of the CBA.
Keywords
economic valuation, regional impact, national impact.
Related Book
Other papers in this volume
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