ENDOGENOUS VALUE OF PUBLIC GOODS IN RURAL AREAS: THE CASE OF WESTPOME RANIA REGION

The aim of the paper was to test a new approach to the valuation of public goods in rural areas referred to as the “Economic Rent Valuation Method” (ERV ). The authors use the concept of producer and consumer rent. The assumption assumes that public goods exert an endogenous influence on resources and their productivity, but do not appear in the model as exogenous variables. The authors test this method on the basis of an examination of public goods as endogenous determinants of income from agrotourism of West Pomerania region in Poland. The endogenous influence of environmental and cultural public goods was confirmed, which increased the marginal effects of the supply variables and weakened the effects of demand factors.