How is the natural diversity valued in the recreational use of forests? An application of the Multi-Program Valuation Method

This paper relates to the use of the Multi-Program Valuation Method in recreation demand modelling. This method is devoted to the study of substitution/complementarity relations in the demand for environmental goods. We propose its application to French South-West coastal forests where three adjoining wilderness areas (the ocean, the sand and the forest) form one sole site. In a general way, our results prove the relevance of the tourist-resident distinction. Residents' mean Willingness-to-Pay is lower than tourists' one and both vary between management schemes depending on the included programs. Except in one case, the three natural assets are independently valued. Thus, forest's value can be clearly identified within the total recreation value and can be used in economic accounting systems or other cost-benefit analysis since there is no embedding bias.