Comparing the Application of Logit, Probit and Tobit method in Economic Valuation of Environmental Resources: The Case Study of Behesht-e-Gomshode in Fars Province, Iran

Comparison of valuation methods of natural resources can result in optimal resource valuation. The present study assesses the recreational value of Behesht-e-Gomshodeh region of Fars province by contingent valuation methods to analyze and compare willingness of visitors to pay, using linear Logit, Probit and two-stage Heckman models. The sample sizes were calculated by simple stochastic sampling method and then all analyses were performed using information of 200 queries. The results showed that despite the two-step Heckman method can distinguish the affecting factors of accepting willingness to pay, and factors affecting its amount, total amount of willingness to pay estimated by this method seems to be lower in comparison with the other methods. Average value of willingness to pay for recreational use based on Logit, Probit functions and Hickman's two-step approach were 9987.47, 9773.83 and 2593 Rials per visitor respectively. Also, the results demonstrated that Logit and Probit methods have more simplicity of calculation and adoption power with region’s reality. Therefore, in comparison with two-stage Heckman method and its limiting assumptions, they are better methods for valuation of natural resources.