xid-7988635_2

# xid-7988635_2 - Thursday Oct 20 1 T ravel cost method...

This preview shows pages 1–3. Sign up to view the full content.

T hursday, Oct 20 1. T ravel cost method Typically used to value recreational resources; Value of recreational resource is inferred from willingness to pay to use the resource Requires collection of survey data on: distance of travel, cost of travel time, hotel & other related costs, Often collects data on visits from ‘zones’ surrounding the recreational site. Use the data to estimate a demand curve by statistical methods, - use the demand curve to calculate total benefits. If there is a change in the recreational site, can be used to determine effect and value of the change. Simple example: Suppose: survey reveals following information: at a travel cost of \$20, 100 visits annually, at a travel cost of \$40, 75 visits annually, at a travel cost of \$55, 30 visits annually, at a travel cost of \$75, 10 visits annually, at a travel cost of \$100, 0 visits annually. A demand curve can be estimated from this data, and then benefits (ie, consumer surplus) can be calculated.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Strengths of travel cost method: Makes use of actual recreational behavior Data relatively easy to collect Weaknesses: Complications from multiple-purpose trips Travel cost model collects data from users only – so, only use value. 2. Stated Preference - based on surveys; generally the only way to get estimates of nonuse values Contingent valuation (CVM), contingent choice - usually in a hypothetical setting Ask questions - ask of valuation, 'what if' quality gives a contingent characteristic. As estimate of WTP or WTA. Example - cleanup of petroleum contamination from leaking underground storage tanks in Washington state. What is benefit? Protection of groundwater from contamination Surveys - once, done by phone (costly, complicated, sue to yes/no and related questions) or by mail (less costly, but simpler and less informative); now, frequently on web. a. collect basic background data from respondents - demographic information, views on the problem (maybe). Then, question - would you vote to require oil companies to begin overhaul of tanks
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 5

xid-7988635_2 - Thursday Oct 20 1 T ravel cost method...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online