Estimating the Consumer Surplus and Recreational Value of Lal Suhanra Park: A Travel Cost Approach

Authors

  • Muhammad Asim Yasin COMSATS University Islamabad, Vehari Campus
  • Khuda Bakhsh COMSATS University Islamabad, Vehari Campus
  • Rafaqet Ali COMSATS University Islamabad, Vehari Campus
  • Muhammad Farhan COMSATS University Islamabad, Vehari Campus
  • Muhammad Kazim Abbas COMSATS University Islamabad, Vehari Campus

DOI:

https://doi.org/10.18666/JPRA-2025-12935

Keywords:

Lal Suhanra Park; recreational value; consumer surplus; travel cost; count models

Abstract

Lal Suhanra National Park is an important site providing habitat to a variety of species and recreational benefits to visitors. However, the park is under severe threat from different sources and requires effective and immediate protective actions. The present study has been designed to estimate the recreational value of the park by computing consumer surplus and factors affecting the demand function of the park. Using systematic random sampling, a sample of 384 respondents visiting Lal Suhanra Park was interviewed. For this purpose, every sixth individual entering the park gate was interviewed to collect required information. Travel cost method was used to estimate the recreational value of Lal Suhanra Park. The results are estimated by using zero-truncated negative binomial model, as count data models are commonly used in travel cost methods because of the non-negative nature of the dependent variable. For this purpose, Poisson regression was the starting point because it assumes equidispersion in mean and variance. But overdispersion in the data makes it inappropriate and biased to use Poisson regression. So, the present study found the Zero Truncated Negative Binomial model more suitable to estimate results. The results show that consumer surplus/person/visit based on the zero-truncated negative binomial model is US$ 10.78. Findings of the study indicate that an increase in income leads to an increase in number of trips to Lal Suhanra Park. Increases in family size, education, distance, and travel costs lead to decreases in the number of trips. The study shows a large gap between the willingness to pay an entrance fee of PKR 30 and flow of consumer surplus. The study suggests that keeping in view the large amount of consumer surplus and recreational value, park facilities may be improved. The government may consider applying an entrance fee to be used for the sustainable development of the park. This study's recommendations can be useful for designing strategies to sustain the recreational value of the park. 

Published

2025-11-01

Issue

Section

Research Papers