Abstract

This paper introduces the Comparative Travel Expenditure (CTE) method, a novel approach to derive exchange values for recreation-related ecosystem services (RES) compliant with the System of Environmental Economic Accounting - Ecosystem Accounting framework. Our approach builds upon the environmental economic literature by modifying the established travel-cost method in order to only consider market transactions to estimate the expenditures directly attributable to RES. By comparing the recreation demand of two sites with different ecosystem conditions, the CTE method allows us to estimate the difference in price driven by the differences in ecosystem conditions, thereby isolating the value of RES for accounting purposes. To illustrate the CTE method, we conduct an empirical analysis of an Italian marine protected area, estimating that 61% of the travel expenditures incurred by tourists are driven by marine and coastal ecosystems, which significantly contribute to the local economy.

Keywords: ecosystem accounting, travel cost, natural capital accounting, exchange value,
recreation-related ecosystem services.