Value of Public Goods Generated by National Sport Training Center (NSTC): The CVM Approach

Abstract

This research aimed to valuate National Sport Training Center (NSTC), the public goods, which will be constructed by the public investment project. Although the project generates valuable public goods and positive externalities, it is difficult to value the benefits of public goods. Contingent Valuation Method (CVM) was used for valuation. The surveys were conducted and the data were then analyzed to measure the benefits such as national pride and harmony which were derived from the sports public good. The findings showed that the CVM was suitable to estimate willingness-to-pay for sports public goods or products not available in other markets. Also, there were questions asking how much sports’ value was and whether the public good was worth investing. The survey was conducted from October to November 2017 in the main provinces of each region which are Bangkok, Konkan, Chiangmai, Songkla, and Chonburi. The results were estimated by using Ordinary Least Square (OLS). From the analysis, it was found that the respondents believed that NSTC would be able to produce such public goods and they perceived the derived benefits such as national pride and harmony which were reflected from their ability to valuate concretely. From the study, it was found that the willingness to pay on national pride and harmony depended on gender, occupation, income, and interest in sports. The results revealed that the average value the respondents were willing to pay on national harmony equaled 19.24 baht per month and the average value of national pride was 20.22 baht per month.                                                                                                                                                                  JEL: A10, H41, C49