Anderson, S.C. – Research conducted by Anderson College finance and economics associate professor Peter C. Melvin, along with Frank Limehouse and Robert E. McCormick of Clemson University, shows that golfers are willing to pay more to play golf at courses that are certified as environmentally friendly. According to Melvin, courses certified by Audubon International were able to raise rates more than non-certified courses between 1995 and 2002.
The research was conducted to determine the significance of environmental golf and how much golfers are willing to pay to play where the environment and wildlife are protected. There are costs to golf courses to become environmentally certified, but the analysis shows the benefits outweigh the costs.
“There may be a variety of reasons for the popularity of certified courses among golfers,” said Melvin. “Some like the idea of endorsing environmentalism with their dollars, while others may simply find certified courses more enjoyable because of scenery and wildlife.”
The study is also the first to estimate the price elasticity or price sensitivity of golf. They find that on the national level the demand for golf is quite elastic or sensitive – meaning golfers are responsive to changes in the price of golf. This is different from what many casual observers think about golf. An elastic demand for golf means that the average golf course can raise revenues when they decrease green fees because the increase in the golf rounds will offset the loss in pricing.
“This latest research from Clemson University confirms what we’ve known and have been telling people in this industry for some time,” says Kevin A. Fletcher, director of programs and administration at Audubon International. “Namely, business value and environmental performance do go hand-in-hand. Our educational and technical assistance programs serve as tools for golf course owners, managers and developers to help make this environmental and economic connection.
“We certainly have research on our members’ abilities to save money through our programs, but it’s important for the growth of these programs to make the connection between environmental performance, customer satisfaction and increasing revenue as well,” he adds. “It seems as though there’s a golfing public out there who desires high-performing eco-friendly golf courses, recognizes the Audubon International name brand and certification through our programs as a way to identify these courses, and are willing to pay a premium for that performance and associated certification identifier. That’s certainly good news for the environment.”