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<br />94 <br /> <br />A.1. DOUGLAS AND R. L. JOHNSON <br /> <br />an outdoor recreation site for the purpose of engaging in a water based recreation <br />activity varies with the instream flow. <br />In a study of angling benefits at nine western slope sites, Walsh et al.19 distin- <br />guished between two distinct sources of benefits from site specific quality improve- <br />ments. Namely, Walsh et al.19 estimated per trip increases in benefits generated by <br />the site improvement, and they also estimated benefits from planned additional trips <br />to the site. The two sources of benefits are closely related in models of rational con- <br />sumer behavior, in which a basic postulate is that the rational response to quality <br />improvement is an increase in expenditures per unit time on the item in question.20 <br />Walsh et al.19 estimated that nearly 40% of the total increase in benefits conferred by <br />improved streamflows at these sites were generated by planned additional trips. A <br />novel approach is reported in Duffield et al.21 in which participation effects of <br />improved streamflows were estimated by counting the number of recreationists at <br />each of several sites for various flow levels. The CVM survey instrument of Duffield <br />et al.21 was administered on-site at two Montana rivers for 37 days during an inter- <br />val that spanned 120 days. The contribution of the participation effect to total <br />benefits conferred from improved streamflows was about one-third of the nonmar- <br />ket on-site benefits conferred. Contingent value method studies such as that by <br />Bishop et al.4 that omit the change in trips may markedly underestimate streamflow <br />related benefits. <br />Bishop et al.4 study flow related changes in benefits conferred for whitewater raft- <br />ing and angling near Lee's Ferry on the Colorado River. Participation days for <br />white water rafting are effectively limited by the National Park Service.4 Angling <br />trips are not limited by regulations, and Richards and WOOd11 report that anglers <br />typically make multiple trips each year. Bishop et al. 4 note that congestion costs <br />might increase markedly along with the increase in aggregate trips to the Colorado <br />River, and that the increase in congestion costs diminishes the aggregate net benefits <br />generated by additional angling trips to the site. The reasoning of Bishop et al.4 on <br />the estimation problem is on target. This line of reasoning also implies that per trip <br />benefits from improved streamflows are ov~restimated by contingent value method <br />studies that omit congestion cost estimates, while aggregate benefits conferred by <br />the site are underestimated if benefits conferred by additional trips to the site are <br />omitted. <br />Loomis et al.7 and other economists have measured the value of aggregate <br />benefits conferred by merely knowing that instream flows of a certain magnitude <br />exist. Such nonmarket benefits are called off-site or existence benefits. The more <br />conventional benefits associated with water based recreational activities and costly <br />visits to a specific stream reach are called on-site benefits. Off-site benefits are anal- <br />ogous to the utilities a citizen receives from knowing that a political office holder is <br />a politician that the citizen respects and admires. Campaign contributions from non- <br />active party members suggest that these aggregate benefits are not trivial. <br />On-site benefits are analogous to the utilities a citizen in a democracy receives <br />from active participation in elections and politics. Such participation includes <br />attending conventions, campaigning for various party candidates, giving and writing <br />speeches on specific issues, and running for office. The utilities generated by these <br />activities often increase with costly outlays of time or money. Intuition and empiri- <br />cal data reported in Walsh et al.22 and Loomis23 suggest that per capita off-site <br />benefits provided by instream flows are small in comparison with on-site benefits <br />provided by instream flows. However, the number of households that receive posi- <br />tive annual off-site benefits is usually much greater than the number that visit a site <br />each year.23 <br />