This paper investigates how different levels of entrance fees affect donations for a public good, a natural park.
To explore this issue, EfD researchers Francisco Alpizar (CATIE-EfD Central America), Peter Martinsson, and Anna Norden (both from the Department of Economics, University of Gothenburg) conducted a stated preference study focusing on visitors’ preferences for donating money to raise funds for a protected area in Costa Rica given different entrance fee levels. The results reveal that there is incomplete crowding out of donations when establishing an entrance fee.
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