VALUATION OF NONPRICED AMENITIES PROVIDED BY THE BIOLOGICAL RESOURCESWITHIN THE MONTEVERDE-CLOUD-FOREST-PRESERVE, COSTA-RICA

To quantify the economic benefits of the Monteverde Cloud Forest Prese rve and to test the contingent valuation method in a third world setti ng, a contingent valuation survey was designed with five experimental treatments. These determined an overall expected value per visitor; de termined and compared two ways of eliciting value, single versus annua l lump-sum payments; and compared average values of Costa Rican versus non-Costa Rican visitors. Visitors were willing to pay to prevent the Preserve's conversion to agricultural uses. Monteverde's value as a c loud forest preserve appears much higher than any value it might have in agricultural use. Despite lower incomes, Costa Rican visitors value d the Preserve more highly than non-Costa Rican visitors. Visitors may have differentiated only weakly between greatly differing bid amounts . Expected values derived from econometric analysis of the differing e xperimental treatments suggest that further methodological adaptation of the contingent valuation method may be required (1) when it is appl ied in third world settings, and (2) when precision is critical in est imating WTPs.