Do entrance fees crowd out donations for public goods? Evidence from a protected area in Costa Rica

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.

Access related discussion paper here.