Economic benefits of Wetlands-based recreation: the case of Kuala Selangor fireflies and Nature Park

• Main Author: Jamal Othman,
• Format: Article
• Published: Environmental Management Society, Malaysia 2000
• Online Access: http://journalarticle.ukm.my/2152/; http://www.ems-malaysia.org/mjem/index.html

This paper presents an application of an environment valuation technique known as the Travel Cost Model on the recreational service flows of Kuala Selangor Nature Park (KSNP) and the adjacent fireflies recreation at Kampong Kuantan. The model attempts to estimate the economic value of the on-site current use value of recreational services for both the KSNP and the fireflies recreation. These resources are highlighted in the light of the current debate on a dam construction proposal up the Selangor River. The dam project might pose negative repercussions on the two resources, in particular the fireflies recreation which are located downstream the Selangor River. Ignoring the economic values of recreational services as well as other critical environmental functions might lead to bias estimates of the project’s Economic Internal Rate of Return favouring resource conversion (the dam project). The annual aggregate net benefits for the fireflies and KSNP recreational services were estimated at RM 2.2 mill and RM0.9 mill, respectively. The high net benefits suggest that the recreational functions of wetlands or forest resources ought to be given serious consideration in decisions affecting the allocation and use of such resources. In the context of project analysis, environmental valuation provides policy-makers with an added perspective in decision making- to view a project in terms of social gains and losses, expressed in money metrics