How to Value the Benefits of a Recreational Area? A Cost-Benefit Analysis of the Conversion of a Brownfield to a Public Beach in Muggia (Italy)
In this paper, we evaluate the potential reconversion to recreational uses of a brownfield area on the shoreline of Muggia (North-East Italy). We perform a Cost-Benefit Analysis of the value to society of such a reconversion compared with alternative scenarios (excavation and “do minimum“). We investigate why existing methods, including the “Economic Impact”, are not be appropriate to provide normative recommendations. As an alternative, we propose a parsimonious method based on contingent valuation and a pressure-intensity function, for valuing the recreational value in a context where available data are scarce. Our results strongly support the reconversion of the area to recreational functions.