Recreational Demands for Maintaining Instream Flows: A Contingent Valuation Approach

Recreational uses of streams, although nonconsumptive, increasingly conflict with traditional off-stream uses of water in arid regions. Recreational demands for instream flows have collective good attributes such that the recreationists' preferences may be inadequately reflected in water allocation decisions. The contingent valuation approach was adapted to impute instream flow shadow prices from a sample of recreationists on the Cache la Poudre River in northern Colorado. During periods of relatively low flows, the estimated instream flow marginal value exceeds the marginal value of water in irrigation, suggesting a need for altered water allocation policies.