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Answer :
1- To evaluate how much visitors value the falls in the recreation site, one valuation technique that could be used is the Contingent Valuation Method (CVM).
CVM is a survey-based technique used to estimate the economic value that individuals place on goods or services that are not typically bought and sold in the market. In this case, the falls at the recreation area have non-market value as they are not being directly traded or priced.
To conduct a contingent valuation study, a sample of visitors would be surveyed to elicit their willingness to pay (WTP) for the preservation or enhancement of the falls. This can be done through a series of hypothetical scenarios where respondents are asked how much they would be willing to pay in additional fees or taxes to support the increased flow over the falls. The survey would also include questions to gather demographic information and other factors that may influence respondents' valuation.
2- One disadvantage of the contingent valuation technique is the potential for hypothetical bias.
Since the valuation is based on hypothetical scenarios, respondents may not provide accurate or reliable responses. Their stated willingness to pay might not align with their actual behavior if they were faced with a real payment scenario. Respondents may overstate or understate their willingness to pay due to factors such as social desirability bias, strategic behavior, or a lack of understanding of the issue being valued.
Another potential disadvantage is that contingent valuation heavily relies on the quality of survey design and implementation. Any flaws in the survey design, sample selection, or data analysis can undermine the validity and reliability of the results. Ensuring a representative sample, minimizing biases, and using appropriate statistical techniques are essential for obtaining accurate and meaningful valuation estimates.
Overall, while contingent valuation can provide insights into the economic value of non-market goods like the falls, it is important to interpret the results with caution and consider potential limitations and biases in the survey design and respondent behavior.
You can learn more about Contingent Valuation Method (CVM) at
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