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Unformatted text preview: 'Travel Cost Method: Conceptual Summary How can we ﬁgure out the value to people of visits to a
park or other attraction? (Not to self: Stop and do when get to “trip demand functien") War} It I» 0U. L new“: '49, (‘0‘) ‘ J ‘53“: : D in.
I'SL :4“. rpm/0,30. '0’”
7:07tenointwfr;0V0l 3"" I) Var
“5 to". In}: rahA 4L. .J..:u:.. , we 1:5 O" _ Costs include $10 actual entrance fee.
Assume that the demands in each zone are identical “Trip demand function” or “Trip demand curve” 100 Total Cost per Trip
29 0 2 4 6 8 10 12 14 16
Trip: per Person (V) Let V denote visitation rate (# of visits per person) 5 V
From these data, estimate trip demand TC = 75 ' IA o) All QIA‘ Zonal Travel Cost Model (2):
Find multiple points on “aggregate demand curve” Already have for 510 entry fee To find another point, calculate visits with hypothetical $40
entrance fee: : y r Zone PopUlation‘ Travel Total ngagear Visits 7 W W _ '3 9500 A 50 9 ’b’ ..a
300 6° 0 A 7 ‘10, we
7 I 140 g; 110 V a O " '10000 ' 150 p ' 0 o
A" W mm . A “6,006
“Aggregate Demand Curve”
100 ~ ¢ 0 9° g.— ”CAOL. "doe Admission price 0 50000 1 00000 1 50000 200000 250000 300000 350000 400000 450000 500000 Wofvicibnwyw E ‘ Steps in the CIawsonKnetsch Travel Cost Method
1. W (i) as concentric circles emanating
from the recreation site. Travel costs from all ints within
each zone to the site are sufficiently close In magnﬁuae to
jusfﬁ nglecting the dm ; ces.
2. From a W at the recreation site, determine number 
4. a culate the WM) for eam zone of origin
(a = (Vi/Ni» 5. Construgt a travgl Est measure (TCi) that reflects the roundtrip
costs of travel fmm the m of origin to the recreation site and 11%;st which may be zero and does not vary across zones. E Calculate relevant socioeconomic data (S) such as income and
education for each distance zone. 7. Use statistical methods to estimate the Wu the
relationship between visitation rates, cost per visit, and travel costs
to other sites (TCQ) controlling for socioeconomic differences. Zi = Vi/Ni = 9(TCi 4' f, TCsii Si) "' 8 . Find a mint on the ﬁye demand curvs by using the
Si; observed to nu . Vietts to the Site m all travel cost zones as the quantity variable and fas a price variable. zmiiXi—(ﬂmsiiam. i=1 1 i=1 9. Re a mu ' times, changing f to find additional
‘points. In this way. you‘g‘iiiai R Wunti the choke price P0 is found such that V(Po) = O. This agumes
thati " toanincreaseinf the wouldto an increase in travel : i.e., ' ' ' '
to'ﬁl numb; elm correspond to a series of hypothetical increases in fadded to existing travel costs. ...
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This homework help was uploaded on 02/19/2009 for the course AEM 4510 taught by Professor Shawhan,d. during the Spring '08 term at Cornell University (Engineering School).
 Spring '08
 SHAWHAN,D.

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