Ju Rn 1,I 197Z the AGRICULTURAL ADJUSTMENT UNIT the UNIVERSITY of NEWCASTLE UPON TYNE

AGRICULTURAL ADJUSTMENT UNIT • UNIVERSITY OF NEWCASTLE UPON TYNE OtANNINI JNDATtON AGRICULTU ...CONOMICS Li E3RAQ, , e . ,jU rN 1,i 197Z THE AGRICULTURAL ADJUSTMENT UNIT THE UNIVERSITY OF NEWCASTLE UPON TYNE In recent years the forces of change have been reshaping the whole economy and, in the process, the economic framework of our society has been subject to pressures from which the agricultural sector of the economy is not insulated. The rate of technical advance and innovation in agriculture has increased, generating inescapable economic forces. The organisation of production and marketing, as well as the social structure, come inevitably under stress. In February 1966 the Agricultural Adjustment Unit was established within the Department of Agricultural Economics at the University of Newcastle upon Tyne. This was facilitated by a grant from the W.K. Kellogg Foundation at Battle Creek, Michigan, U.S.A. The purpose of the Unit is to collect and disseminate information concerning the changing role of agriculture in the British and Irish economies, in the belief that a better understanding of the problems and processes of change can lead to a smoother, less painful and more efficient adaptation to new conditions. Publications To achieve its major aim of disseminating information the Unit will be publishing a series of pamphlets, bulletins and books covering various aspects of agricultural adjustment. These publications will arise in a number of ways. They may report on special studies carried out by individuals; they may be the result ofjoint studies; they may be the reproduction of papers prepared in a particular context, but thought to be of more general interest. The Unit would welcome comments on its publications and suggestions for future work. The Unit would also welcome approaches from other organisations and groups interested in the subjects of agricultural adjustment. All such enquiries should be addressed to the Director of the Unit. Unit Staff Director: Professor J. Ashton, M.A., B.Litt, M.S. Head of Unit: Professor S.J. Rogers, B.Sc.(Econ) Administrative Officer: B. H. Davey, B.Sc.(Agric), M.Econ The Agricultural Adjustment Unit, Department of Agricultural Economics, The University, Newcastle upon Tyne, NE1 7RU. RECREATION BENEFITS FROM A RESERVOIR A CASE STUDY BY R. C. LEWIS AND M. C. WHITBY Research Monograph No. 2 , AGRICULTURAL ADJUSTMENT UNIT UNIVERSITY OF NEWCASTLE UPON TYNE 1972 PREFACE In the course of developing its understanding of the processes of agricultural adjustment, the Agricultural Adjustment Unit has become increasingly aware of the relevance of non-farm aspects of the subject. On the one hand there is a range of issues involving rural communities and their future development. These con- siderations include changes in population and its structure, changes in incomes in rural areas, problems regarding the provision of social services and public utilities and the whole political and social relationship of rural communities to the urban majority. On the other hand there are a number of questions regarding resource use, where economic activities alternative to agriculture need to be evaluated in terms of their economic and social consequences. Thus the development of tourism and recreational facilities has come to be a major subject of discussion, possibly only slightly less intense than the more dramatic issues ofconservation and pollution. These areas for debate have two characteristics of interest to the Agricultural Adjustment Unit. Firstly, they involve public decisions, which impinge directly or indirectly on agriculture and farming communities. Secondly, consideration of such issues necessitates difficult judgements regarding the worthwhileness, in a number of senses, of alternative policies. The first major activity of the Agricultural Adjustment Unit in this complex area was the mounting of a Conference at Aviemore, the proceedings of which were published by Oliver and Boyd early in 1972 in a book entitled 'The Remoter Rural Areas of Britain'. This conference generated considerable interest, as a result of which a number of research possibilities were explored. In developing these ideas it quickly became apparent that there would be methodological problems to face before any serious attempt could be made to tackle practical questions in a satisfactory manner. Thus, staff in the Agricultural Adjustment Unit have become increasingly involved on some theoretical issues, which nevertheless have a direct bearing on policy matters. It was decided to publish some of these studies as research monographs, so contributing to the debate at a more theoretical level than hitherto, and therefore producing material likely to be of the greatest interest to • specialist workers in the subjects concerned. The objective of these Research Monographs is to stimulate discussion on the various ways of evaluating problems, demonstrating the techniques by application to a particular subject. This monograph is the second of the series, the first being on 'Models of Population and Income' by Dr. K. G. Willis. The subject is that of the benefits of recreational facilities to the community at large. There are, however, wider questions such as the total recreational requirement of a particular region, the appropriate pricing policies to be adopted, and the impact of such facilities on nearby farming communities which also demand attention. 3 The case study concerns the Derwent Reservoir, located some 20 miles from Tyneside. Recreational facilities were planned at this reservoir from the beginning as a conscious act of policy. There are many technical questions concerning fishing, day-visiting and sailing and their relationship with the primary purpose of the reservoir of providing fresh water. These are not discussed here in any detail, but cannot be overlooked. The emphasis ofthe monograph is on a method of evaluating public benefits by means of a technique which is not beyond discussion. The resultant assessment of public benefits, amounting to some 12,000, per annum, from the three activities, gives an approximate idea of the importance of this type of amenity for an urban population demanding recreational facilities in adjacent rural areas. On its own, however, this is a trivial sum compared with the very large total amounts spent on urban recreation of all kinds, and indeed on all forms of rural recreation. In the course of preparing this paper the research workers concerned have received considerable assistance from a number of statutory and voluntary bodies without which it would not have been possible to have progressed this far. In particular we would like to acknowledge the assistance of Sunderland and South Shields Water Co., who made their fishing records available, the Derwent Reservoir Sailing Club,. whose members responded very generously to our requests for information, and to the Durham County Planning Department who gave us access to survey data on day-visiting at the Reservoir. Constructive comment from colleagues, and in particular from Dr. R.J. Smith, of the Water Resources Board, has improved the work and is gratefully acknowledged. Further studies of resource use and rural community problems are already in hand and will be published in due course. However, the Adjustment Unit would welcome discussions with interested parties, either on the methodological aspects or on particular issues in the field. JOHN ASHTON March 1972 4 RECREATIONAL BENEFITS FROM A RESERVOIR A CASE STUDY CONTENTS Page 1. Introduction .. • • • • • • • • .. • • • • • • 7 2. The Theoretical Aspects of Estimating Recreation Benefits • • • • 12 3. The Value of Fishing at Derwent Reservoir • • • • • • • • 16 4. Day-Visiting Benefits at Derwent Reservoir • • • • • • • • 21 5. Sailing at Derwent Reservoir • • .. • • • • • • • • 24 6. Recreation Benefits at the Proposed North Tyne Reservoir .. • • 31 7. Summary and Conclusions • • • • • • • • • • • • 36 Appendix 1. Observed fishing data .• • • • • .• • • • • 40 Appendix 2. Observed day-visiting data .. • • • • .. • • 43 Appendix 3. Membership of the Sailing Club • • • • .. • • 45 Appendix 4. Sailing Club Questionnaire .. • • • • • • • • 47 Appendix 5. Summary of Sailing Survey data .. .. • • • • 49 5 1. INTRODUCTION The whole question of the environment, in its many facets, has become an increasingly popular subject for debate in recent years. One aspect ofthis is the development of water resources for urban uses; another has been the apparently growing demand by the urban populace for recreational facilities in rural areas. Both of these topics, when reservoirs are being proposed, or exist, impinge directly or indirectly on agriculture and rural communities and here, as elsewhere, the subject of agricultural adjustment embraces a much wider range of issues than that offarming alone. No attempt is made here to cover the full range of topics debated about conflicting interests and public decision-making. This paper deliberately narrows down to one theoretical issue, that of measuring the benefits of recreation. Attention is focussed on the methodological and data problems likely to be encountered, and an attempt is made to clarify some of these points by examining a particular reservoir. The Derwent Scheme was created by the Sunderland and South Shields Water Company and the Durham County Water Board in 1967. The total cost amounted to 8m,of which some 51--in was for the reservoir itself. The reservoir is primarily a source of potable water, capable ofsupplying 25m gallons of

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