CAN RECREATION VALUES FOR A LAKE CONSTITUTE A MARKET FOR BANKED AGRICULTURAL WATER

This paper presents estimates of the recreational use value to prevent the loss of a western lake threatened by diversions of upstream water s that supply it. The recreation demand model used to estimate recreat ion-related values is the popular repeated nested multinomial legit mo del. The model is specified to allow an individual to choose when to v isit various sites during the season, because site choice is likely to be influenced by water levels that change over the course of the seas on. The values are compared to agricultural values in order to assess whether the potential recreation demand side of a market for a water b ank exists. (JEL C25, D61, Q25).