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40 <br />4D <br />r <br />m <br />are the trapezoid, PPIQ'Q. Ideally, the demand curves would be derived and the <br />areas computed to obtain net gain. However, with freely distributed goods, data <br />do not exist to use standard statistical estimation procedures. <br />An alternative estimation procedure makes uses of average willingness to pay. <br />In Figure 5, the visitation rate at the zero price is OQ' and the total benefits are <br />OP'Q'. If price PA is the average willingness to pay, then PA.Q (area OPABQ') <br />equals area OP'Q', PA is midway between a zero price and the maximum price <br />anyone would pay, where the demand is linear. The estimation procedure has <br />the desirable feature of simplicity, e.g, all that is needed is the visitation rate and <br />the average willingness to pay. It is probably the most widely used method for <br />estimating benefits from recreational project. <br />In the absence of beach nourishment, erosion wou"4 eventually destroy much of <br />the value of the beaches in Indian River County and recreational benefits would <br />be substantially reduced. The pre -project beaches in Indian River have already <br />experienced significant erosion. Under these conditions the benefits attributable <br />to the project are a sl lhstantial portion of the total bar ielits derived from a <br />continuously maintained beach. For example, Sector 7 has suffered so much <br />erosion that it is hardly used by the public. There is also a serious lack of public <br />parking in this beach area. <br />Figure 4 <br />'Iblal IkmcPits or lkach Consumption gal a Xero i,fice <br />r7 Q Q, Qlt <br />