The Valuation of National Parks: Analysis, Methodology and Application

Abstract

"Australia is acknowledged throughout the world for its diverse landscape and the large number of unique plant and animal species. Fortunately these flora and fauna have been protected in large reserves dedicated as national parks, ranging from snow-covered mountains to rainforests located in all Australian States and Territories. However due to external factors, such as additional leisure time and increasing overseas visitor numbers, mounting pressure is being placed on this resource. The need for maintenance and upkeep of national parks has risen, and at times some costs are passed onto the visitor using a 'user pays' basis. As a result national parks are arguably to be increasingly more commercial in nature. This paper analyses and valuation methodologies adopted for valuing this unique resource and the valuation of national parks is considered in the context of market based and non-market based methods. With many government agencies adopting accrual accounting procedures, the regular valuation of all assets including national parks is essential. Although national parks are a public good, this paper suggests that there may be merit in considering the relevance of market valuation based techniques to the valuation of national parks."