Low Carbon Economy, 2011, 2, 99-106
doi:10.4236/lce.2011.22013 Published Online June 2011 (http://www.SciRP.org/journal/lce)
Copyright © 2011 SciRes. LCE
Estimate the Forest Recreational Values of
Zhangjiajie in China Using a Contingent Valuation
Method
Zhiming Leng, Yihui Lei
Business School, Jishou University, Hunan, China.
Email: lzm9306@126.com
Received March 3rd, 2011; revised March 30th, 2011; accepted April 21st, 2011.
ABSTRACT
Zhangjiajie, a World Natural Heritage, is located in Chinese Wuling hinterland and rich in forest resources with cov-
erage rate 64.61 percent of forest. Zhangjiajie was listed in World Natural Heritage Catalogue by the UNESCO in
1992 and is one of the most important tourism sites in China. As a leading and pillar industry, the tourism achieved
remarkable effects on the economic development, where forest eco-tourism has played an important role. The purpose
of this research is to estimate the forest recreatio nal values of Zhangjiajie using a contingent valuation method (CVM).
The empirical results show that no n-use values a ccou nt for th e majo rity o f the to ta l values o f Zhang jiajie. On this basis,
the contingency table and Chi square test method are employed to test the related factors influen cing tourists’ willing-
ness to pay (WTP). The test results show that educational level and income level are the most important factors influ-
encing WTP.
Keywords: Forest Recreation, Recreational Values, Contingent Valuation Method, Zhangjiajie
1. Introduction
Zhangjiajie, covering 1012 acres forest land, or 71 per-
cent of the Zhangjiajie territory, is well-known as its for-
est resources. In 2009 the number of tourists has been
over 20 million people and the tourism industry has been
the pillar of the economy of Zhangjiajie. Therefore it is
very significant to estimate the forest recreational values.
Currently, to estimate the forest recreational values
mostly used travel cost method (TCM) and contingent
valuation method (CVM). From the view of consumer
surplus, Marshall consumer surplus is calculated in TCM,
while the Hicks consumer surplus is calculated in CVM,
so the two methods have very different theoretical basis.
The TCM mainly employs the expenditures of tourist to
establish the demand curve for recreational services and
solve the consumer surplus to calculate the use values of
recreational values. With the utility maximization
principle and hypothetical market conditions, the CVM
directly investigates the WTP for improving environ-
mental benefits and the WTA for environmental losses to
derive their economic values. Most of the literatures
about forest recreational value estimating use the CVM,
especially for estimating the choice values, preserve
values and the other non-use values the CVM is the best
choice. Known as the most promising valuation method
for environmental benefits, the CVM not only can be
used to estimate the use values, but also the non-use
values of tourism sites by directly investigating consu-
mers. Therefore, this study used CVM to estimate the
values of Zhangjiajie forest recreation.
In fact, the CVM has been commonly employed as one
of the standard approaches to measure the forest recre-
ational values. In 1963 Davis firstly proposed and applied
CVM to estimate the recreational values of forest
camping and hunting. Since then the CVM increasingly
was introduced to estimate the economic value natural
resources, hunting and aesthetic benefits [1,2]. Reference
[3] concluded that the use of CVM in developing coun-
tries may derivate a lower public willingness to pay. On
this basis, reference [4] pointed out that the CVM was
the most widely applicable method, which can be used to
estimate the use values of resources and so far was the
only approach to learn about all the use and non-use
values of environmental goods. The CVM was used to
value the Chinese urban residents’ WTP for improving
river water quality [5]. Reference [6] used CVM to re-
Estimate the Forest Recreational Values of Zhangjiajie in China Using a Contingent Valuation Method
100
search the Sweden residents’ WTP for improving the
quality of atmospheric environment. Reference [7] used
TCM to estimate the recreational values of forest re-
sources and public parks. The effectiveness of CVM and
calculation model was studied [8,9]. In the process of the
development of CVM, the research scope has been
expanded from the recreational value of environmental
goods or services to the effectiveness of environmental
improvement and the economic losses of environmental
damage [10,11]. In China, reference [12] did a compre-
hensive research on the non-use values of biodiversity of
Changbai Mountain Nature Reserve. Reference [13] em-
ployed the CVM to estimate the service values of the
landscape of Suzhou River in Shanghai. The CVM was
also used to estimate the values of ecosystem services
[14,15]. The CVM derives the values of environmental
goods by inquiring the WTP for improving environ-
mental quality or the willingness to accept (WTC) for
tolerating environmental damage [16]. Compared with
travel cost method, the CVM can directly investigate the
WTP of consumers, so it is the most important and
widely used method for estimating the environmental
benefits [17]. All the previous mentioned references
show that the research scope of recreational values con-
tinue to be broadened and its assessment methods and the
processes have already developed to a systematical dire-
ction. But in China, there is a certain gap with foreign in
both theory and practice of recreational values estimation.
This paper statistically analyzed the WTP of tourists to
construct a regression model of survival function, then
employed the VCM to calculate the use, heritage/sele-
ctionion and preserve values of Zhangjiajie forest recre-
ation. On this basis, the contingency table analysis and
Chi square test method were employed to test the related
factors for tourists’ WTP, then the effects of gender, age,
educational level and income level on the WTP were
analyzed.
The rest of this paper is organized as follow. Section II
describes the study area and the evaluation methodology.
Section III presents a brief description of how to collect
and process data. Section IV estimates and analyzes the
forest recreational values, including use, heritage or sele-
ction and preserve values. Conclusions and discussions
are presented by section V.
2. Methodology
2.1. Study Area
Zhangjiajie city, with a total area of 9516 square kilome-
ters and a total population of 1.6 million, almost 77 per-
cent belong to ethnic minority groups, is located in the
northwest of Hunan Province. In 1982, Zhangjiajie was
named China’s first national forest park and was listed
into the World Natural Heritage Catalogue by the UNE-
SCO in 1992. What’s more, Zhangjiajie was awarded the
title of “World Geological Park” in 2004. Zhangjiajie,
covering 1012 acres forest land, or 71 percent of the
Zhangjiajie territory, is rich in forest resources. There are
over 300 marvelous scenic spots in Zhangjiajie, such as
Tianzi Mountain, Yangjiajie and Baofeng Lake. As the
core of Zhangjiajie attractions, Wulingyuan Scenic and
Historic Interest Area is composed of Zhangjiajie Na-
tional Forest Park, two major Nature Reserves-Tianzi
Mountain and Suoxi Valley and the new Yangjiajie Sce-
nic Area, stretching over a total area of 397 square kilo-
meters.
The entire area is covered with towering cliffs of sand-
stone of quartz and dense unspoiled forests that conceal
fantastic caves full of stalactites and stalagmites. The
quartzite sandstone hills in Wulingyuan are unique in
their large number and fairly pure composition (being
75% - 95% of quartz). With the changes of seasons and
the weather, they constantly present different views to
spectators. The highest peak in this area is Tuerwangyue
Feng or Rabbit Watching the Moon Peak and Mt. Tianzi
is particularly recommended for its good view. Near the
downtown area of Zhangjiajie stands grand Tianmen
Mountain called “the Soul of Wuling”, and there is a
beautiful Maoyan River that enjoys the reputation of
“one-hundred-li long gallery”, a Jiutian Cave named “the
number-one cave in Asia” and other charming scenic
spots in Wulingyuan. All these natural wonders are worth
exploring. After more than twenty years of development,
tourism industry has become the leading industry in
Zhangjiajie, which has stimulated the development of
other industries related to tourism. In the meantime, eco-
tourism has been developed greatly here. Today Zhang-
jiajie has become the world-famous eco-tourist destina-
tion.
2.2. Survey Process
The survey process of CVM is described as follows.
1) Design a program. For the subjects of the investi-
gation, a questionnaire must be designed and whether
WTP or WTA is employed. Theoretically, the values of
these two measurement methods should be the same or
similar, but practical value of WTA usually are greater
than the one of WTP. As a more objective measurement
method, WTP is chose in this paper.
2) Choose the approach guiding WTP. The guiding ap-
proaches of WTP are divided into continuous and dis-
crete contingent valuation. Continuous contingent valua-
tion consists of repeated bidding game, open-ended ques-
tion format and payment card format, while discrete con-
tingent valuation primarily consists of dichotomous
choice format. This paper used a questionnaire survey of
C
opyright © 2011 SciRes. LCE
Estimate the Forest Recreational Values of Zhangjiajie in China Using a Contingent Valuation Method101
payment card format, which allows respondents to choose
a maximum payment number or range.
3) Sampling survey. The survey was executed through
interviews, telephone and E-mail. Before the formal sur-
vey a pre-survey has been done for improving the ques-
tionnaire.
4) Analyze the survey results. Use appropriate mathe-
matical methods for statistical analysis to draw the con-
clusions.
2.3. Evaluation Model
According to the needs of this study and the characteris-
tics of questionnaire, this paper chose payment card for-
mat and non-parameter model to calculate mean WTP.
Assume WTP is consistent with a probability distribution,
then there is a cumulative density function
F
x and
the corresponding survival function

Sz x1F .
The mean WTP can be expressed as follows:



00
WTP 1-d
aa
F
zdzSz z

(1)
The median WTP is the one of 50 percent of cumula-
tive probability, which can be expressed as the following
equation:
 
11
WTP 0.50.5FS

 (2)
To multiple the median or mean WTP by the total
number of tourists can get the forest recreational values.
3. Data Sources and Processing
3.1. Data Sources
In October 2009, research team has investigated in Zhang-
jiajie National Forest Park, Tianzishan natural beauty and
Suoxiyu natural scenic spot. In this investigation, in or-
der to facilitate the investigation and statistics, the re-
search team only interviewed the tourists from China and
calculated the forest recreational values according to the
total number of Chinese tourists in 2009. From the com-
position of tourism revenue we can see that tourism for-
eign exchange earnings accounted for only 1.47 percent.
From tourists source structure we can see that foreign
tourists accounted for only 4.37 percent. Therefore ig-
noring the WTP of foreign tourists has little effect on the
estimation of Zhangjiajie forest recreational values. In
the process of investigation, firstly investigators de-
scribed an overview of scenic spots in Zhangjiajie, a hy-
pothetical exchange market and a payment approach, and
then asked the WTP of respondents. In the whole inves-
tigation process, the respondents’ willingness and the ef-
ficiency of questionnaire were high. Since the release of
questionnaire used a random sampling approach and the
respondents covered the whole tourism areas, the survey
achieved the extensive goal required by CVM [20]. The
research team released 198 questionnaires, of which 185
questionnaires were valid. The questionnaire includes
two parts.
1) Basic situations of tourists consist of gender, age,
occupation, educational level, income level, travel costs
and visit frequency. Age and income level use an open
questions and answers, while occupation and educational
level use a closed questions and answers.
2) The WTP for the use, heritage/selection and pre-
serve values. In the respect of use values, to ensure that
the willingness of answers is for paying the forest scenes,
we emphasize the natural landscape and strip out the
cultural landscape. For example, a question is “In order
to enjoy the natural scenery, you are willing to pay the
maximum money for the travel”. In the respect of heri-
tage/selection values, we emphasize whether for them-
selves or future generations can continue to enjoy the
natural forest landscape. For example, a question is “For
you and your future generations can enjoy the scenery,
how much you are willing to pay each year”. In the re-
spect of preserve value, a question is “In order to protect
the living environment of wild animals and plants, how
much you are willing to pay each year”. The choice of
WTP employs interval data, which consist of RMB 0,
RMB 1 - 50, RMB 51 - 100, RMB 101 - 150, RMB 151 -
200, RMB 201 - 300, RMB 301 - 400, RMB 400 above.
3.2. Data Processing
According to the characteristics of questionnaire, the
effects of gender, age, occupation, educational level, in-
come level, tourism cost and visit frequency on WTP
have been analyzed. The gender, age, occupation and
educational level are regarded as dummy variables. Use
the random samples to get the WTP of tourists for the
forest recreational functions and the corresponding mean
and median WTP.
4. Empirical Study
4.1. Descriptive Statistics of Basic Information of
Tourists
The descriptive statistical results of 185 valid question-
naires are described as follows:
1) Gender information. There are 106 males and 79
females, and males account for 57.30 percent of the total
number of tourists.
2) Age information. Overall, 21 - 30 years old tourists
account for 26.49 percent, 31 - 40 years old tourists ac-
count for 31.35 percent, and 41 - 50 years old tourists
account for 18.92% percent.
3) Occupation. There are 34 administrative officers
and managers, 48 junior officers, 75 teachers and students,
11 research staffs, and 17 peoples of other occupations.
Copyright © 2011 SciRes. LCE
Estimate the Forest Recreational Values of Zhangjiajie in China Using a Contingent Valuation Method
Copyright © 2011 SciRes. LCE
102
Tourists mainly consist of administrative officers and
managers, as well as teachers and students.
4) Educational level. There are 12 peoples with gradu-
ate degree or above, 69 with university education, 26
with high school diploma, 40 with junior high school
education and 38 with primary education or below.
5) Income levels. The tourists with RMB 1001 - 2000
per month account for 40 percent of the total visitors,
those with RMB 2001 - 3000 per month account for 22.70
percent, and those with below RMB 1000 per month ac-
count for 20.54 percent.
6) Tourism cost. The tourists spending RMB 501 - 1000
account for 42.70 percent of the total visitors, those
spending RMB 500 or below account for 34.59 percent,
and those spending RMB 1001-1500 account for 11.35
percent.
7) Visit frequency. There are 127 tourists for the first
visit and 58 tourists are often visiting. Among them, the
tourists for the first visit are 68.65 percent of the total
visitors.
4.2. Calculate the Recreational Values
4.2.1. Calculate the Use Values
Table 1 presents the frequency of use values of forest
recreation. To change the percentage of the survival
function into a decimal and take the upper limit of each
WTP to calculate the values of the survival function can
get the Table 2 and Figure 1.
According to Figure 1, in the interval [0,400] the qua-
dratic, cubic curve and exponential curve more fit the ob-
servations than linear, so linear function can be excluded.
The regression results of the four functional forms are
presented in Table 3.
As can be seen from Table 3, the quadratic, cubic and
exponential forms are tested by the F-value, which
indicate that the three models are effective. However,
analysis of variance shows the P-value of quadratic
coefficient of cubic form is 0.451, which is greater than
0.05. Therefore the cubic form does not apply to this
study. The P-value of coefficient of quadratic and expo-
nential forms are 0.000 and 0.002 respectively, which are
lower than 0.05. Therefore, to choose the quadratic form
is appropriate in the interval [0,400], while the interval is
greater than 400, the exponential form is more appro-
priate. The sub-function of regression model is described
as follows:
 

2
1.0024 0.00400.00000530400
1.0892exp 0.0060400
zzz
Sz zz
 

(3)
when S(z) equates 0.5, the median WTP equates 159.17.
Then the mean WTP is:

400
0 400
WTPd( )d
194.04 16.48210.52
SzzSz z



In 2009, 18,477,400 domestic people and 806,800 over-
seas people were reported to have visited Zhangjiajie.
Because the survey interviewed only domestic tourists, in
accordance with 18,477,400 people in 2009 the use
values of Zhangjiajie forest recreation are RMB 29.41 -
38.90 billion.
In all variables, gender and visit frequency are the two-
categorical variables, while age, occupation, educational
level, income level, travel costs are multi-categorical
variables. In order to test the reasonability of the results,
the correlation between variables and use values were
analyzed, and the significance of variables were tested
using contingency table and Chi square test method. The
results are presented in Table 4.
As can be seen from Table 4, educational level, in-
come level, travel costs and visit frequency have signifi-
cant effects on WTP, while gender, age and occupation
have insignificant effects on WTP. According to the sta-
tistics of WTP, educational level has the greatest effects
on the mean WTP. The statistical results show that for
the WTP with university education or above are 9.68
Table 1. Frequency of use values.
WTP(RMB) Frequency Percentage Effective Percentage Cumulative Percentage S(z)
0 3 1.6 1.6 1.6 98.4
1 - 50 30 16.2 16.2 17.8 82.2
51 - 100 37 20.0 20.0 37.8 62.2
101 - 150 28 15.1 15.1 53.0 47.0
151 - 200 33 17.8 17.8 70.8 29.2
201 - 300 20 10.8 10.8 81.6 18.4
301 - 400 18 9.7 9.7 91.4 8.6
400 above 16 8.6 8.6 100.0 0.0
Total 185 100.0 100.0
Estimate the Forest Recreational Values of Zhangjiajie in China Using a Contingent Valuation Method103
Table 2. Survival function of use values.
WTP(RMB) S(z)
0 0.984
50 0.822
100 0.622
150 0.470
200 0.292
300 0.184
400 0.086
Figure 1. Probability of survival functional values greater
than z.
Table 3. Regression results of the four functional forms.
Coefficient
Functional
Form R2 F-value Significance Constant b1 b
2 b3
Linear 0.924 60.776 0.001 0.884 –0.002
Quadratic 0.994 321.047 0.000 1.004 –0.004 5.254E–6
Cubic 0.994 161.812 0.001 1.002 –0.004 3.980E–6 2.157E–9
Exponential 0.982 605.135 0.000 1.085 –0.006
Table 4. Correlation between variables and use values.
Variable 2
Degree of Free Significance Correlation
Gender 6.354 7 0.499 No
Age 46.544 35 0.092 No
Occupation 63.124 28 0.235 No
Educational Level 74.618 28 0.000 Yes
Income Level 1.604 28 0.000 Yes
Travel Costs 68.484 28 0.001 Yes
Visit Frequency 16.433 7 0.028 Yes
times the one with lowest education, which indicate that
WTP increase with educational level. According to the
mean WTP of the five groups of income level, WTP also
increase with income level. The WTP of tourists with
RMB 4000 above per month are 12.54 times those with
RMB 1000 or below, and the WTP of tourists with RMB
3001 - 4000 are 9.67 times those with RMB 1000 or be-
low. With the travel costs increasing, WTP show a mo-
notonically increasing trend. The WTP of travel costs
RMB 1501 - 2000 are 7.46 times those of travel costs
RMB 500 below, 5.12 times those of travel costs RMB
501 - 1000. WTP have positively correlated with visit
frequency, and the WTP of frequent tourists are greater
than those of first tourists.
4.2.2. Heritage/Selection Values
The regression results show that the P-value of unitary
and quadratic coefficient of quadratic form are 0.001 and
0.015 respectively, which indicate that the quadratic form
is suitable for the study. But the P-value of quadratic and
cubic coefficients of cubic form are 0.735 and 0.826
respectively, which indicate that the curve form is not
suitable for the study. According to the F-value, the
exponential form is also suitable, and its fit is better than
the one of quadratic form, therefore a model is con-
structed as follows:

1.0489exp 0.0059Sz z
(4)
when
Sz equates 0.5, the median WTP equates
125.57. Then the mean WTP is
0
WTP( )d177.78Sz z

So the heritage/selection values of Zhangjiajie forest
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Estimate the Forest Recreational Values of Zhangjiajie in China Using a Contingent Valuation Method
104
Table 5. Survival function of heritage/selection values.
WTP (RMB) S(z)
0 0.936
50 0.843
100 0.568
150 0.425
200 0.281
300 0.189
400 0.081
recreation are RMB 23.20 - 32.85 billion. The results of
correlation between variables and heritage/selection values
are shown in Table 7.
As can be seen from Table 7, educational level, in-
come level and travel costs have significant effects on
WTP, while gender, age, occupation and visit frequency
have insignificant effects on WTP. WTP increase with
educational level and the difference between the maxi-
mum and minimum pay is RMB 400. The differences be-
tween the WTP of different income level groups are also
great.
4.2.3. Calculate the Preserve Values
As can be seen from Table 9, the F-value and t-value of
the coefficients of the three function form are statistically
significant. According to the fit effect, when 0 z 400,
the quadratic form is the best, and when z > 400, the
exponential form is the best. Therefore, a sub-function is
constructed as follows:


2
0.9987 0.00400.00000520400
1.0943exp 0.0062400
zzz
Sz zz
 

when
Sz equates 0.5, the median WTP equates
156.53. Then the mean WTP is
 
400
0 400
WTP dd
190.41 14.78205.19
Sz zSz z



In 2009, the preserve values of Zhangjiajie forest
recreation are RMB 28.92 - 37.91 billion. Therefore, in
2009 the total values of Zhangjiajie forest recreation are
the sum of use, heritage/selection and preserve values,
which equate RMB 84.50 - 111.89 billion. As shown in
Table 10, the use values account for little proportion of
the total values, but non-use values account for the
majority.
As can be seen from Table 11, educational level and
income level have significant effects on WTP, while gen-
der, age, occupation, travel costs and visit frequency have
insignificant effects on WTP. To summarize the corre-
lation between variables and the use, heritage/selection,
preserve values of forest recreation show that educational
level and income level have greater effects on WTP,
while gender, age and occupation have relatively less
effects on WTP.
5. Conclusions
1) According to the number of tourists in 2009, the use,
heritage/selection and preserve values of Zhangjiajie
forest recreation were calculated. As can be see from
Table 10, use values only account for 35 percent of the
total values, while non-use values account for the major-
ity of the total values.
2) The results based on contingency table analysis and
Chi square test method show that educational level and
income level have significant effects on WTP, while
Table 6. Regression results of heritage/selection values.
Coefficient
Functional
Form R2 F-value Significance Constant b1 b
2 b3
Quadratic 0.983 114.803 0.000 0.968 –0.004 5.151E–6
Cubic 0.982 58.519 0.004 0.962 –0.004 3.150E–6 3.389E–9
Exponential 0.988 370.738 0.000 1.049 –0.006
Table 7. Correlation between variables and heritage/selection values.
Variable 2
Degree of Free Significance Correlation
Gender 7.836 7 0.347 No
Age 34.676 35 0.484 No
Occupation 57.8 28 0.172 No
Educational Level 71.418 28 0.000 Yes
Income Level 143.249 28 0.000 Yes
Travel Costs 61.422 28 0.002 Yes
Visit Frequency 14.968 7 0.036 No
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Estimate the Forest Recreational Values of Zhangjiajie in China Using a Contingent Valuation Method105
Table 8. Survival function of preserve v al ues.
WTP (RMB) S(z)
0 0.968
50 0.843
100 0.616
150 0.470
200 0.281
300 0.189
400 0.081
Table 9. Regression results of preserve values.
Coefficient
Functional
Form R2 F-value Significance Constant b1 b
2 b3
Quadratic 0.989 182.369 0.000 0.999 –0.004 5.204E–6
Cubic 0.989 93.763 0.002 0.993 –0.004 3.226E–6 3.35E–9
Exponential 0.986 358.025 0.000 1.094 –0.006
Table 10. Estimating results of Zhangjiajie forest recreational values(RMB billion).
Use Values Heritage/Selection Values Preserve Values Total Values
29.41 - 38.90 23.20 - 32.85 28.92 - 37.91 81.53 - 109.66
Table 11. Correlation between variables and preserve values.
Variable 2
Degree of Free Significance Correlation
Gender 10.647 7 0.155 No
Age 21.872 35 0.959 No
Occupation 28.851 28 0.420 No
Educational Level 65.788 28 0.000 Yes
Income Level 124.162 28 0.000 Yes
Travel Costs 61.304 28 0.086 No
Visit Frequency 10.262 7 0.174 No
gender, age, occupation, and visit frequency have insig-
nificant effects on WTP. Educational level has signifi-
cant effect on WTP, and the WTP of tourists with uni-
versity education or above is stronger than those of less
educated tourists. Income level also has significant effect
on WTP, which present that the mean WTP monotoni-
cally increase with income level.
3) It can be seen from the results of CVM that educa-
tional level and income level have close relationship with
WTP, which mean that the tourists with higher education
have stronger awareness of ecological environment pro-
tect and higher ecological quality requirements, and in-
come level directly restricts WTP. The results suggest
that developing economy to improve people’s income
level and attaching importance to the development of
higher education to raise people's awareness of ecologi-
cal environment protect can enhance WTP. This paper
has presented the factors influencing WTP, which have
guiding function on planning scientific tourism devel-
opment program of Zhangjiajie, coordinating the rela-
tionship between resources, environment, and economic
and social benefits in the process of tourism development,
and optimizing tourism system operation.
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