2008_04_15_Solutions - 'Travel Cost Method: Conceptual...

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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}: rah-A 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 CIawson-Knetsch 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 round-trip 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).

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2008_04_15_Solutions - 'Travel Cost Method: Conceptual...

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