The economic evaluation of the State Ecological Park of sítio Fundão, In Crato, CE

Abstract

The problems related to the environment are considered market failures, negative externalities, which require correction by means of the evaluation of environmental damages. This study aims to evaluate the state ecological park of Sítio Fundão (state of Ceará, Brazil), whose implementation aims to preserve the natural and cultural wealth of the city: original mud house with two floors, remnants of Atlantic Forest. The evaluation of the state park is made through the contingent valuation method using the logit model. In accordance with the literature, the variables included in the model had the expected effects. Higher bid values and for singles decrease the likelihood of willingness to pay, while age, education, family income, and spending on leisure increase this probability. There were no differences by gender and race in the model without protest votes. Yet, men are less willing to pay than women in the model without protest votes. The average WTP estimated using the Krinsky- Robb method was R$ 3.33 and R$ 7.77 for models with and without protest votes, respectively. Aggregate amounts exceed the amount invested by the government of Ceará, which shows that the policy of creation of the park is effective, i.e., greatly increases the welfare of the population involved.