excess of the price which he would be willing to pay (measured by a
demand curve) over what he actually paid. The concept of consumer
surplus was used in estimating the value of recreation.
The annual average value per visit was calculated as:
17.77
Value per visit = (e1.929 .051c) dc
3.23
= $59.91
The entire shaded area under the demand curve is included in consumer
surplus even though no recreation is consumed until the minimum number
of days spent at the site is reached. If there were not a discontinuity
due to the minimum number of.days, the demand curve would intersect the
on-site cost axis and the entire area would be included in consumer
surplus. Due to the discontinuity the curve is truncated.
The economic value of recreation for an individual in the
Kissimmee River Basin is $59.91. To find the total value of recreation
to the area the individual value is multiplied by the total number of
visitors. There were an estimated 479,260 visits to the Kissimmee
River Basin in 1970 [1]. The value of recreation in the Kissimmee River
Basin in 1970 was estimated as:
(479,260) ($59.91) = $28,712,467