Economic analysis of the potential impact of climate change on recreational trout fishing in the Southern Appalachian Mountains: An application of a nested multinomial logit model

Global warming due to the enhanced greenhouse effect through human activiti es has become a major public policy issue in recent years. The present stud y focuses on the potential economic impact of climate change on recreationa l trout fishing in the Southern Appalachian Mountains of North Carolina. Si gnificant reductions in trout habitat and/or populations are anticipated un der global warming since the study area is on the extreme margins of trout habitat of the eastern U.S. The purpose of this study is to estimate the po tential welfare loss of trout anglers due to global warming. A nested multi nomial legit model was developed and estimated to describe the angler's fis hing choice behavior. The estimated median welfare loss (Compensating Varia tion) range from $5.63 to $53.18 per angler per single occasion under the v arious diminished trout habitat and/or population scenarios.