Funding conservation through use and potentials for price discrimination among scuba divers at Sipadan, Malaysia
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Funding conservation through use and potentials for price discrimination among scuba divers at Sipadan, Malaysia. / Emang, Diana; Lundhede, Thomas; Thorsen, Bo Jellesmark.
In: Journal of Environmental Management, Vol. 182, 2016, p. 436-445.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Funding conservation through use and potentials for price discrimination among scuba divers at Sipadan, Malaysia
AU - Emang, Diana
AU - Lundhede, Thomas
AU - Thorsen, Bo Jellesmark
PY - 2016
Y1 - 2016
N2 - The protected coral reefs off the coast of Malaysia receive numerous tourists, while also being as fishing grounds. These joint environmental pressures raise the need for additional costly conservation measures. It is natural to consider the potential for expanding the ‘user pays’ principle, already implemented in the form of various user fees. This study explores the potential for price discrimination among scuba divers at Sipadan in Malaysia. The study applies a choice experiment to estimate scuba divers willingness to pay higher user fees for avoiding decreases of or getting improvements in environmental and recreational aspects of the diving experience. We investigate how sensitivity to fee size and hence willingness to pay vary with suitable selected characteristics of divers. We find potentials for a third degree price discrimination strategy exploiting higher willingness to pay among foreign divers (45%), male divers (16%) and people who has visited Sipadan several times (25%). Thus, revised pricing structures could significantly increase funds for the preservation of Sipadan.
AB - The protected coral reefs off the coast of Malaysia receive numerous tourists, while also being as fishing grounds. These joint environmental pressures raise the need for additional costly conservation measures. It is natural to consider the potential for expanding the ‘user pays’ principle, already implemented in the form of various user fees. This study explores the potential for price discrimination among scuba divers at Sipadan in Malaysia. The study applies a choice experiment to estimate scuba divers willingness to pay higher user fees for avoiding decreases of or getting improvements in environmental and recreational aspects of the diving experience. We investigate how sensitivity to fee size and hence willingness to pay vary with suitable selected characteristics of divers. We find potentials for a third degree price discrimination strategy exploiting higher willingness to pay among foreign divers (45%), male divers (16%) and people who has visited Sipadan several times (25%). Thus, revised pricing structures could significantly increase funds for the preservation of Sipadan.
KW - Choice experiment
KW - Fee
KW - Price discrimination policy
KW - SCUBA diving
U2 - 10.1016/j.jenvman.2016.07.033
DO - 10.1016/j.jenvman.2016.07.033
M3 - Journal article
C2 - 27521689
AN - SCOPUS:84981287146
VL - 182
SP - 436
EP - 445
JO - Journal of Environmental Management
JF - Journal of Environmental Management
SN - 0301-4797
ER -
ID: 166465127