Nonparametric estimation of compensatory variation of recreational service consumers in a biosphere reserve in Mexico

Objective: This study aims to estimate and compare the compensating variation associated with recreational access to the La Michilía Biosphere Reserve, Durango, to provide robust technical evidence for its sustainable management and conservation. Design/methodology/approach: A contingent valuation method was employed using a dichotomous referendum format (yes/no), based on a survey administered to 148 residents from neighboring communities. Willingness to pay was estimated using both non-parametric approaches (Kaplan-Meier, Kriström, and Turnbull) and a parametric logistic regression model.

Results: The average compensating variation estimated through the non-parametric Turnbull method was $41.33 per visitor, whereas the logistic model yielded an estimate of$52.30. This discrepancy highlights the conservative bias of non-parametric methods, which mitigate the risk of overestimation due to restrictive functional form assumptions.

Limitations/implications: The positive skewness in the distribution of willingness to pay particularly affects the Kriström method especially its Spearman-Karber variant by extrapolating beyond the offered price range, which may constrain its empirical validity. Findings/conclusions: The findings demonstrate a significant economic valuation of recreational services by the local population. The estimated values support the potential implementation of access fee schemes as a viable financing mechanism, contingent upon comprehensive social and regulatory assessment.