Discussion Paper

Do Entrance Fees Crowd Out Donations for Public Goods? Evidence from a Protected Area in Costa Rica

May 16, 2014 | Francisco Alpízar, Peter Martinsson, Anna Nordén

This was created in partnership with Environment for Development .

Abstract

In this paper, we investigate how different levels of entrance fees affect donations for a public good, a natural park. To explore this issue, we 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.