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<br />Law 89-72>', Pl'ovldJng for recreation and
<br />1lsh and wUdllfe ... full o.nd equa.! part-
<br />ners with all other purpooee In Federa.!
<br />water proJ",*".
<br />For the most part, outdoor recreation
<br />Is produced publ1cly and d1Btrtbuted In
<br />the absence of a viable market mecha-
<br />nIsm. WhIle the private provision of
<br />'recreation opportunIties has been In-
<br />erea.slng in recent years, analys1s of
<br />recreation needs Is conducted in the ab-
<br />sence of any substantial amount of feed-
<br />b~k from effectively functioning mar-
<br />kets to guide the evaluation of publ1cly
<br />produced recreation goods and services.
<br />Under these conditions-and based on a
<br />With and without analys1s--the increase
<br />in recreation provided by s. plan, since
<br />It represenUl a direct OODSlUIlptlon sood.
<br />.may be measured or va.lued on the bas1a
<br />of slmulated willingness to pay, In com-
<br />Puting the projected recreeMon demand.
<br />however, ,the analysls shooId take ex-
<br />p11clt aecounrt of competition from
<br />recreation opportun1tlee w1thln the area.
<br />of 1nfluence of the proposed plan.
<br />There are in exl5tence a number of
<br />methods, or approoches, to approxlmat-
<br />lng demand and what people are willing
<br />to pay far outdoor recreatdon. A general-
<br />1zed methodology encompassing the
<br />travel-d1stance approach Is set forth
<br />below,
<br />(1) An analutical approach relating
<br />travel cost to diStance. Using marginal
<br />travel costa <1.e.. va.r1able costs of a.uto-
<br />mobile operation directly related to the
<br />number of miles driven) taken B8 a
<br />measure of wbat people are wUIlng to
<br />,pay tor water-or1ented recreatloo and
<br />how price aJrects use. the rela.tionship
<br />between price'and per capita attendance
<br />can: be established for recreMion sites
<br />and market e.rea.s. This relationship, the
<br />conventional demand curve having a
<br />negative slope, sums up the response of
<br />users' demand to alternative prices of
<br />the recreational product (or experience) .
<br />Separate demand curves are constructed.
<br />to reflect each kind ot recreation use,
<br />whether day-use travel. camping-use
<br />travel, or other. If there is no entrance
<br />charge at the project, per capita rates
<br />tor each distance or travel cost would
<br />be consistent with the constructed
<br />dem:a.nd curves.
<br />It a fee Is charged. however, the cost
<br />to the recreatl.on1.st would then be equal
<br />to the tee plWl' his travel cost, thWl
<br />,:UrTlinilllhtng the per capita use rate.
<br />Applying a range of reasonable entrance
<br />fee charges to the constructed demand
<br />sehedules, additional separate day-use
<br />and camping-use demand curves for s1tes
<br />&re constructed to determ1ne respective
<br />attendance which may be expected under
<br />such conditions. Following this, 1n1t1al
<br />project year day-use and camping-use
<br />values are computed by measuring the
<br />area. under their respective demand
<br />curves. These vaJues can be compared
<br />with market projeCtions and existing
<br />capacities to determine If actual site
<br />demand will malterlallze, The InItlal year
<br />values are then projected throughout the
<br />life of the project consistent with the
<br />calculated recreational use predictions.
<br />The resultant ligures, total values for
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<br />NOTICES
<br />
<br />day use and camping use over the life
<br />of the project. are separately dlSCOWlted
<br />at the preva.illng discount rate estab-
<br />lished by these standards to obtain avel"-
<br />age annual equivalent values.
<br />(2) Other approaches, A variety of
<br />oUler approaches may be taken toward
<br />the evaluation of recrea.Uon goods and
<br />services. In general. however, no one
<br />method Is completely satisractory to the
<br />exclusion 01 all others. The applicable
<br />rule to follow, taking cogItlzance of the
<br />unique circumstances or setting of a
<br />pa.rtJ.cular setting, including the ava.1l-
<br />ab1l1ty. of actual market data and ex-
<br />perience, is to use that procedure which
<br />appears to provtde the best measure or
<br />expression at wtll1ngness to pay by the
<br />actual consumer of the recreation good
<br />or service provided by the plan.
<br />In the Interim. wh1Ie recreation
<br />evaJuation methodology is betng further
<br />developed, the following schedule of
<br />monetary unit values may be used in the
<br />prepa.mt!on of plans.
<br />(3) Simulated pricer per recreation
<br />da~, A single unit value will be ....igned
<br />per recreation day regardless: of whether
<br />the user engages in one activity or sev..
<br />eraI. The unit value, however. may re-
<br />tlect both the quaUty ot activity and the
<br />degree to which opportunities to engage
<br />in a number of activities are provided.
<br />Type 01 Outdoor Range 01 Unit
<br />Recreation Day DaJ/ Value.!
<br />(]eneraJ ______________________ $0.75-f2.28
<br />(A recreation day involving
<br />prlmar11y those activities at~
<br />tractive to the majority o! out-
<br />door recreatton18t8 and whIch
<br />generally require the develop-
<br />ment &nd. malntenQ.llco of con-
<br />venient &ccess and adequ&te
<br />facUltIos.)
<br />SpeCialized. __________.:________ S: 00- 9.00
<br />(A recreation day involVIng
<br />thoae activities far which oppor-
<br />tunities, in general, are l1m.1ted,
<br />intensity of use 18 low, and often
<br />may involve & large pensonaI ex-
<br />pense by the user.)
<br />Two classes of outdoor recreation days,
<br />general and specialized, are differenti-
<br />ated. for evaJuation purposes. Estimates
<br />of total recreation days of use for both
<br />categories, when applicable, wll1 be
<br />developed,
<br />The general class constituting the
<br />grea.t majority of all recreation activities
<br />associated with water projects embraces
<br />the more usual activities, such as for
<br />example, sw1mm1ng, picnicking, boating,
<br />and most warm water ftsh1ng. .
<br />In v.lew ot the fewer 8Iternatives avail-
<br />able and the lIkel1hood that higher total
<br />costs are generally incurred by those en-
<br />gaged In hWltlng and lIshlng activities
<br />compared with those engaged In other
<br />types of outdoor recreation, it may be
<br />anticipated that the monetary unit values
<br />applicable to ftsh and wlldllfe recreation
<br />will ordlnar1ly be larger than those ap-
<br />pl1ed to other types of recreation.
<br />The special class includes activities
<br />less often assoc1ated with water projects,
<br />such as big game hunting and salmon
<br />lIshlng,
<br />A separate range of values 15 provided
<br />for each class in order that informed
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<br />judgment may be employed In determin-
<br />ing the applicable unit values for each
<br />indlv1dual project Wlder consideration.
<br />Where considered appropriate, departure
<br />from the range of values provided :18 per~
<br />mlssible if a full explanation 18 given.
<br />f. .Commercial fishing and trapping.
<br />Water and land resource plans may in-
<br />clude specific measures designed for the
<br />purpose of enhancing the fish and wild-
<br />life resources and associated opportluni-
<br />ties for the direct harvesting of fish and
<br />game as a commercial product. Beneficial
<br />effects to commercial fishing, hunting,
<br />and trapping consist of the value of an
<br />increase in the volume or quallty of the
<br />products expected to be marketed. This
<br />increase 13 determ1ned by compa.rlng
<br />values of future production .with and
<br />without the plOll1,
<br />The beneflciaJ effects from the Increase
<br />In output of lIsh and wildlife produc!.ll re-
<br />sulting from a plan is measured as the
<br />tatal value to the t1nal user. of the output
<br />reflected by the applica.ble market price,
<br />minus the expenditures incurred to ob-
<br />tain the :fLsh or game.
<br />g. Other program outpuu. In addition
<br />to the Inore common outputs which have
<br />been dealt with in the precedJng sectlons,
<br />pla.ns ma.y prodUce other goods and .sery..
<br />lees wh:l.ch contribute to national eco-
<br />nomdc development. Proper appUca.t1on
<br />ot fhe measurement standards to these
<br />additional OUtpuUl should be guided by
<br />analogy to the outputs which have been
<br />discussed. care must be exercised in de-
<br />fin1ng types of outputs to assure that!
<br />overlapping categories are not used
<br />which lead to dupllca.Uon in the esti-
<br />mates of benellolal elfccts.
<br />3. Measurement 01 increase3 in output
<br />resulting Irom external economies. Tech-
<br />nologiCal external economies are the
<br />bene1lctal effects or individuals, groups.
<br />or Industries that may or may not benell~
<br />from the direct output of the project.
<br />They result from.a plan if an increase in
<br />the output at finBJ. coIlBumer goods or
<br />intermediate goods takes place beyond
<br />that whlch would be obtained In the ab-
<br />sence of the plan and over and above
<br />direct outputs of the plan. Th1s increased
<br />output may result from :flrmB which are
<br />economically related. to the plan tak:l.ng
<br />advantage of more emcient. production
<br />techniques o.nd thereby releasing re-
<br />sources for use in producing other goods
<br />and services. The change in net income
<br />of the economiCally related firms wUl be
<br />used. as an indicator of the value of this
<br />type ot national economic development
<br />effect. Changes in the total value of con-
<br />sumer goods due to externa.llt1es because
<br />of a plan can be accoWlted for by Wllng
<br />mess1lN:ment techniques like those de-
<br />scrtbed. above.
<br />l! society would obtain the Pl'oJect out-
<br />put of final consumer goods or the output.
<br />of firms that utlllze the lntermedIeroe
<br />goods of libe project from some other
<br />8OlIl'Ce In the _nee of the project,
<br />then libe net _ome POO;Uon of the re-
<br />l&ted tlrms would be unaIfccted by the
<br />pIan.
<br />SOme examples of potential situations
<br />for tlhe occurrence of extems.1. economies
<br />llSSoc1&ted with lInal consumer goods and
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<br />FEDERAL REGISTER, VOL. 36, NO. 24S-TUESDAY, DECEMBER 21, 1971
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