Sherry Larkin

Chuck Adams

University of Florida

John Whitehead

Appalachian State University

O Background Surveys Methodology Results Caveats

Background: Background: User User ValuesValues Artificial reefs provide a suite of

ecosystem services Primary anthropogenic uses are for

“active use” in study region Apply stated preference techniques

(e.g., Morgan et al. 2009)

Study AreaStudy Area

Six coastal counties in SW Florida with artificial reef programs

User GroupsUser Groups(1) For-Hire Providers:Charter (Six-pack) A vessel licensed to take no more

than six paying passengers usually for offshore trolling or deepwater bottom-fishing.

Party (head) A vessel licensed to take more than 11 persons usually offshore for bottom-fishing.

Guide A vessel licensed to take no more than 4 persons usually near shore for flats-fishing and casting

Dive A licensed vessel designed to accommodate multiple persons on a chartered dive/snorkel trip.

Rental A vessel you would rent from a local marina or boat rental business, and operate yourself.

(2) Clients

(3) Private boat owners

SurveysSurveys

For-hire Providers: Mail survey to all 963 in six-county study region

For-hire Clients: Internet survey to 6,841,151 individuals in SE region via Expedite

Private Boat Owners: Mail survey to 19,428 in study region and service area

Variables: user activity, familiarity with the programs, vessel/business or demographics, WTP with follow-up

 Stakeholder GroupMechanism

and Frequency

Proposed Fee Levels

For-hire Providers Annual license

$8, $16, $24, $32

For-hire Clients Trip fee5%, 10%, 15%,

20%Private Boat

OwnersAnnual license

$3, $6, $12, $24

Stated preference questions:Stated preference questions:Would you support the establishment of a Would you support the establishment of a mandatory mandatory Artificial Reef Trust Fund Artificial Reef Trust Fund “add on” fee for “add on” fee for the maintenance and deployment of new reefs? Y/N the maintenance and deployment of new reefs? Y/N

If “yes”, how sure are you of this decision?If “yes”, how sure are you of this decision?• Not at all (uncertain)Not at all (uncertain)• Somewhat sureSomewhat sure• Very sure (certain)Very sure (certain)

MethodologyMethodology Ordered model:

N persons (i = 1, 2, … N) each have one of M preferences (j = 1, 2, … M) The M alternatives are ordered

Each person’s degree of support, Di:

Di = k k·Xik + i

Use respondents’ stated level of support: Yi = 0 if Di 1

Yi = 1 if 1 < Di 2

Yi = 2 if 2 < Di 3

Yi = 3 if Di > 3

Where j 0 and 1 < 3 < 3

Pr(Yi = Mj)

i std. normal

Stated Preference Results: WTP?Stated Preference Results: WTP?

Providers(N=213)

Clients (N=604)

Boat owners (N=2,702)

If “Yes”: Not sure: 4% 24% 7% Somewhat sure: 40% 51% 39% Very sure: 56% 25% 54%

 Providers WTPProviders WTP MeanEst. sign. at

10% or less

Constant 1.206LnFee (Natural log of proposed fee) 2.91 - 0.249

Reef days in last year30.8 days

0.007

Very familiar with program? (1 if yes)

46% 0.352

Mu(1) 0.071Mu(2) 0.652

Ordered Probit:Ordered Probit:

N/S: Business type, vessel length, annual permit fees, declining use

Notes: N=191 (24%); 2 = 18.2***; LnL = -123.1; 60% correct

 Clients WTPClients WTP MeanEst. sign. at

10% or less

Constant 1.740

LnFee (Natural log of proposed fee) 2.40 - 0.298

Age 50.8 yrs - 0.009Caucasian? (1 if yes) 85% 0.233

Male? (1 if yes) 70% 0.200

Mu(1) 0.392

Mu(2) 1.373

Ordered Probit:Ordered Probit:

N/S: Florida resident, education, or incomeNotes: N=493; 2 = 23.7***; LnL = -637.0; 65% correct

 Boat Owners WTP Boat Owners WTP MeanEst. sign. at 10% or less

Constant 1.206LnFee (Natural log of proposed fee) 2.16 - 0.249Reef days in last year 5.4 days 0.010Very familiar with program? (1 if yes)

12% 0.156

Income ($1,000) $88.8/yr 0.004Caucasian? (1 if yes) 93% - 0.207Mu(1) 0.080Mu(2) 0.623

Ordered Probit:Ordered Probit:

N/S: Vessel length, resident of coastal county, age, no. kids in householdNotes: N=1,981 (11%); 2 = 257.8***; LnL = -2,041.0; 64% correct

What is the WTP?What is the WTP?

Group

Providers

Clients

Boat owner

WTPDelta Method

$25.86***

39.1%***

$7.02***

Median WTPGrand Constant

$24.56

69.7%

$7.08

How does reef use affect How does reef use affect the WTP?the WTP?

Group

Providers

Boat owner

No reef trips

$16.01

(0 trips)

$6.25

Grand Constant

$24.56

$7.08

Mean + 1stddev

$133.62

(75 trips)

$9.64

(19 trips)

How does familiarity How does familiarity with the reef program with the reef program affect the WTP?affect the WTP?

Group

Providers

Boat owner

Not familiar

$24.31

$6.79

Grand Constant

$24.56

$7.08

Very Familiar

$99.82

$9.56

SummarySummary

WTP ranged from 45% to 64% by user group WTP amounts would be sufficient to fund existing

program and new reefs Although heavy users are WTP more, non-users

have WTP > 0; those ‘very familiar’ with the current program are WTP more (role for education)

Caveats: Client model needs workAdditional WTP measures need to be derived

Sherry Larkin

Chuck Adams

John Whitehead