The following is an inventory of selected papers concerning the Travel Cost
(TC) Method. Perusing this list will give you an idea of the evolution of thought
concerning this method over the course of the last couple of decades. Most
innovations in this literature have been incremental, rather than sweeping. Many
different researchers have contributed to the now substantial body of empirical
experience with these specifications. These papers are listed roughly in reverse
chronological order. I will attempt to update these lists annually.
This inventory is intended for students in UCLA's graduate sequence in
Environmental and Natural Resource Economics.
Wen, Jie, "Evaluation of Tourism and Tourist Resources in China:
Existing Methods and Their Limitations," International Journal of Social
Economics; 25(2-3-4), 1998, pages 467-85.
Abstract: The evaluation of both tourism and tourist
resources in China remains problematic on the macro-level, only the
positive contributions of tourism have been evaluated, ignoring the
aspects of disparities between the east coast and the inland area,
inbound tourism and domestic tourism, nature-based and city-based
tourism, positive and negative effects from tourism and so on. On the
micro-and site-specific level, tourist resources characterised by
non-marketable and non-use values are not properly evaluated, exposing
these fragile resources to the plight of exploitation.
Commercialisation of tourist resources, including natural environment
and ethnic cultures, threatens further development of tourism in China.
The limited applicability of the travel cost and the contingent
valuation method in measuring the value of recreation sites in China is
discussed.
Englin, Jeffrey; Boxall, Peter; Watson, David, "Modeling Recreation
Demand in a Poisson System of Equations: An Analysis of the Impact of
International Exchange Rates," American Journal of Agricultural
Economics; 80(2), May 1998, pages 255-63.
Abstract: The authors extend count data travel cost
modeling by developing a utility theoretic system of semilogarithmic
recreation demand equations. The restrictions required to make the
system utility theoretic are applied during estimation. The model is
applied to individual wilderness recreation trips in a system of four
Canadian wilderness parks. The resulting demand system is used to
examine the impacts of changing U.S.-Canadian currency exchange rates
on participation and welfare of U.S. recreationists.
Kennedy, John, "'A Travel Cost Analysis of the Value of Carnarvon Gorge
National Park for Recreational Use': Comment," Australian Journal of
Agricultural and Resource Economics; 42(3), September 1998, pages
263-65.
Beal, Diana, "'A Travel Cost Analysis of the Value of Carnarvon Gorge
National Park for Recreational Use': Reprise," Australian Journal of
Agricultural and Resource Economics; 42(3), September 1998, pages
267-68.
Hanley, Nick; Wright, Robert E.; Adamowicz, Vic, "Using Choice
Experiments to Value the Environment: Design Issues, Current Experience and
Future Prospects," Environmental and Resource Economics; 11(3-4),
April-June 1998, pages 413-28.
Abstract: In this paper we outlines the "choice
experiment" approach to environmental valuation. This approach has its
roots in Lancaster's characteristics theory of value, in random utility
theory and in experimental design. We show how marginal values for the
attributes of environmental assets, such as forests and rivers, can be
estimated from pair-wise choices, as well as the value of the
environmental asset as a whole. These choice pairs are designed so as
to allow efficient statistical estimation of the underlying utility
function, and to minimise required sample size. Choice experiments have
important advantages over other environmental valuation methods, such
as contingent valuation and travel cost-type models, although many
design issues remain unresolved. Applications to environmental issues
have so far been relatively limited. We illustrate the use of choice
experiments with reference to a recent U.K. study on public preferences
for alternative forest landscapes. This study allows us to perform a
convergent validity test on the choice experiment estimates of
willingness to pay.
Fix, Peter; Loomis, John, "Comparing the Economic Value of Mountain
Biking Estimated Using Revealed and Stated Preference," Journal of
Environmental Planning and Management; 41(2), March 1998, pages 227-36.
Abstract: This research compares non-market valuation
techniques by applying a count data travel cost method (TCM) and
dichotomous choice contingent valuation method (CVM) to a form of
recreation for which it has not been previously applied: mountain
biking. Due to mountain biking's increasing popularity these estimates
of benefits may be useful in addressing conflicts. One of the most
famous mountain biking sites in the U.S. (Moab, Utah) was chosen as the
site for which to apply these two models. The benefits that were
estimated for trips taken in the spring of 1996 are US$205 and US$235,
for the TCM and CVM, respectively. These values are not statistically
different using conventional significant levels.
Greene, Gretchen; Moss, Charles B.; Spreen, Thomas H., "Demand for
Recreational Fishing in Tampa Bay, Florida: A Random Utility Approach,"
Marine Resource Economics; 12(4), Winter 1997, pages 293-305.
Abstract: An estimation of demand for recreational fishing
in Tampa Bay, Florida, can facilitate the environmental management of
the bay. A nested random utility travel cost model is used to estimate
access values. Results suggest that average annual values for the bay
alone are $18.14 and $0.048 for participants and nonparticipants,
respectively.
Englin, Jeffrey; Lambert, David; Shaw, W. Douglass, A Structural Equations
Approach to Modeling Consumptive Recreation Demand, Journal of Environmental
Economics and Management; 33(1), May 1997, pages 33-43.
Abstract: In this analysis we develop a two equation structural
model of a count travel cost model of recreational angling demand and angling
success. By modeling the two equations jointly we avoid the difficulties
associated with the usual approach which estimates the demand for recreational
fishing sites assuming the existence of an exogenous measure of fishing quality.
Our analysis explicitly develops the joint log likelihood function that combines
the two processes. We estimate our model using full information maximum likelihood
methods.
Kling, Catherine L., The Gains from Combining Travel Cost and Contingent
Valuation Data to Value Nonmarket Goods, Land Economics; 73(3), August
1997, pages 428-39.
Abstract: This paper provides a critical assessment of the
improvements in precision and bias to welfare measures from combining contingent
valuation and travel cost data. Simulation experiments are performed using a
variation of the model first suggested by T. Cameron (1992) with a focus on
identifying likely lower bounds on these gains. In addition to examining single
bounded contingent valuation as a component of the combined model, this paper
investigates additional gains that may accrue from employing a double bounded
variant of contingent valuation. Sizable gains in both bias and precision are
found in the simulation experiments. The results suggest that additional
investigation into these models is warranted.
Roe, Brian; Boyle, Kevin J.; Teisl, Mario F., Using Conjoint Analysis to
Derive Estimates of Compensating Variation, Journal of Environmental Economics
and Management; 31(2), September 1996, pages 145-59.
Abstract: We use several approaches to derive estimates of
Hicksian compensating variation from conjoint ratings data. The different
estimation approaches produced mixed results with respect to consistency with
utility theory, statistical significance of key variables, magnitude of welfare
estimates, and confidence bounds on welfare estimates. These findings suggest
conjoint analyses are not a panacea for the problems being debated regarding
contingent valuation and travel cost methodologies, and conjoint questions appear
to share many of the advantages and disadvantages associated with dichotomous
choice, contingent valuation questions. (c) 1996 Academic Press, Inc.
Smith, V. Kerry, Estimating economic values for nature: Methods for non-
market valuation, New Horizons in Environmental Economics series. Cheltenham,
U.K.: Elgar; distributed by Ashgate, Brookfield, Vt., 1996.
Abstract: Thirty two previously published papers examine
measures of the economic values for the services of nature and how those values
are constructed from people's choices. Papers focus on overviews of economic
theory and econometric methods of environmental valuation; travel cost recreation
demand models; hedonic models; household production models; the contingent
valuation method; and the agenda of future research on nonmarket valuation. Smith
is the Arts and Sciences Professor of Environmental Economics at Duke University
and a University Fellow with Resources for the Future.
Layman, R. Craig; Boyce, John R.; Criddle, Keith R., Economic Valuation of the
Chinook Salmon Sport Fishery of the Gulkana River, Alaska, under Current and
Alternate Management Plans, Land Economics; 72(1), February 1996, pages
113-28.
Abstract: This paper extends the standard travel cost method to
develop estimates of the economic value of recreational chinook salmon fishing on
the Gulkana River, Alaska, under existing and hypothetical fishery management
conditions. Respondents were asked to state how the number of trips that they took
to the study area would change if alternative fishery management practices were
imposed. Three hypothetical management conditions were considered: a doubled 1992
sport fish harvest, a doubled daily bag limit, and a season bag limit of five.
Each of the hypothetical fishery management conditions provides increased economic
returns to anglers.
Englin, Jeffrey; Cameron, Trudy Ann; Poisson Regression Analyses with
Individual Panel Data, Augmenting Travel Cost Models with Contingent Behavior
Data:, Environmental and Resource Economics; 7(2), March 1996, pages 133-
47.
Boxall, Peter C.; Adamowicz, Wiktor L.; Tomasi, Theodore, A Nonparametric Test
of the Traditional Travel Cost Model, Canadian Journal of Agricultural
Economics; 44(2), July 1996, pages 183-93.
Shaw, W. Douglass; Jakus, Paul, Travel Cost Models of the Demand for Rock
Climbing, Agricultural and Resource Economics Review; 25(2), October 1996,
pages 133-42.
Abstract: In this paper we estimate the demand for rock climbing
and calculate welfare measures for changing access to a number of climbs at a
climbing area. In addition to the novel recreation application, we extend the
travel cost methodology by combining the double hurdle count data model (DH) with
a multinational logit model of site choice. The combined model allows us
simultaneously to explain the decision to participate and to allocate trips among
sites. The application is to climbers who visit one of the premiere rock climbing
areas in the northeastern United States and its important substitute sites. We
also estimate a conventional welfare measure, which is the maximum WTP to avoid
loss of access to the climbing site.
Choe, KyeongAe; Whittington, Dale; Lauria, Donald T., The Economic Benefits of
Surface Water Quality Improvements in Developing Countries: A Case Study of
Davao, Philippines, Land Economics; 72(4), November 1996, pages 519-37.
Abstract: Two nonmarket valuation techniques the contingent
valuation method and travel cost model are used to estimate the economic value
that people in Davao, Philippines, place on improving the water quality of the
rivers and sea near their community. The contingent valuation and travel cost
estimates are very close to each other and are quite low, both in absolute terms
and as a percentage of household income. These findings suggest that water
pollution control is simply not a high priority for Davao's residents, and support
the argument that households' willingness to pay for environmental amenities, such
as improved water quality, is low.
Bowker, J. M.; English, Donald B. K.; Donovan, Jason A., Toward a Value for
Guided Rafting on Southern Rivers, Journal of Agricultural and Applied
Economics; 28(2), December 1996, pages 423 32.
Abstract: This study examines per trip consumer surplus
associated with guided whitewater rafting on two southern rivers. First,
household recreation demand functions are estimated based on the individual travel
cost model using truncated count data regression methods and alternative price
specifications. Findings show mean per trip consumer surplus point estimates
between $89 and $286, depending on modeling assumptions and river quality.
Magnitudes of these surpluses are very dependent on assumptions about the
opportunity cost of time.
McKean, John R.; Walsh, Richard G.; Johnson, Donn M., Closely Related Good
Prices in the Travel Cost Model, American Journal of Agricultural
Economics; 78(3), August 1996, pages 640-46.
Abstract: This travel cost demand study included prices for
closely related goods such as money and time costs of on site time, on site
purchases, and other trip activities. A disequilibrium labor market model was
estimated. The sample was mainly composed of persons who did not substitute
earned income for leisure time. The few persons who had the capability to
substitute time for money were excluded from the sample. Consumer surplus was
estimated to be $69.00 per trip using the expanded model. A model using only the
conventional travel cost variables resulted in estimated surplus per trip of
$45.00.
Bateman, Ian J. et al., Measurement Issues in the Travel Cost Method: A
Geographical Information Systems Approach, Journal of Agricultural
Economics; 47(2), May 1996, pages 191 205.
Abstract: A review of the travel cost (TC) literature shows that
the base measurements of travel time and distance underpinning many studies are
often obtained via crude simplifications. This paper presents an application of
the TC method conducted using geographical information system (GIS) software.
This permits superior measurement of both travel time and distance providing a
more accurate and realistic basis for valuations.
Perez y P. Jerez, Luis et al., La valeur d'usage a des fins de loisir des
espaces proteges en Espagne. Comparaison entre methode des couts de deplacement
et methode d'evaluation contingente. (Recreational Use Value of Protected Areas in
Spain. A Comparison of the Travel Cost and Contingent Valuation Method. With
English summary.), Cahiers d'Economie et Sociologie Rurales; 0(41), 4th
Trimester 1996, pages 39-56.
Abstract: Valuation of environmental goods, such as protected
natural areas, allows us to obtain information that could be included in cost
benefit analysis as an aid for public sector decision taking processes. This
article presents an application of the contingent valuation method and of the
travel cost method. We remark that the results are close to those obtained in
other applications found in environmental goods valuation literature and detect
certain sensibility of the results we obtain depending on the hypothesis
considered.
Grover, Stephen E., Modelling Recreation Demand: An Empirical Analysis Using
the Nested Logit Travel Cost Model, University of Wisconsin, Ph.D. 1996
Englin, Jeffrey; Cameron, Trudy Ann, "Augmenting Travel Cost Models with
Contingent Behavior Data: Poisson Regression Analyses with Individual Panel
Data," Environmental and Resource Economics, 7(2), March 1996, pp.
133-47.
McKean, John R.; Johnson, Donn M.; Walsh, Richard G., "Valuing Time in Travel
Cost Demand Analysis: An Empirical Investigation," Land Economics, 71(1),
February 1995, pp. 96-105.
Abstract: The opportunity cost of time is usually a significant
part of the price variable in the travel cost demand model. Thus, its accurate
measurement is important to the estimation of demand and benefit valuation for
nonmarket resources. This paper empirically tests models that assume that income
is the basis for opportunity time cost with an alternative 'pooled' model based on
a disequilibrium labor market for some recreationists. Acceptance of the
hypothesis that disequilibrium models may be necessary for some individuals
implies increased survey information requirements so that the appropriate model
can be applied to each individual.
Englin, Jeffrey; Shonkwiler, J. S., "Modeling Recreation Demand in the Presence
of Unobservable Travel Costs: Toward a Travel Price Model," Journal of
Environmental Economics and Management, 29(3), Part 1 Nov. 1995, pp. 368-77.
Abstract: An important issue in the application of travel cost
models is the construction of a travel cost variable. This paper develops an
econometric approach that views travel costs as an unobserved latent variable.
The latent variable approach utilizes indicators to capture the role of individual
travel costs in recreational demand models. The latent variables approach has at
least two advantages over conventional approaches. One, the indicators can
include both traditional components such as time and distance and non-traditional
components such as the scenic beauty. Second, the estimation procedure results in
each indicator being valued in dollar terms. (c) 1995 Academic Press, Inc.
Hellerstein, Daniel, "Welfare Estimation Using Aggregate and
Individual-Observation Models: A Comparison Using Monte Carlo Techniques,"
American Journal of Agricultural Economics, 77(3), August 1995, pp.
620-30.
Abstract: Due to the weak behavioral foundations of aggregate
demand models, zonal travel cost models have been largely abandoned in favor of
models based on individual observations. However, sample selection difficulties
in individual-observation models often require the use of distribution-sensitive
limited-dependent variables estimators. In this paper, the author uses Monte
Carlo simulations to investigate whether the bias from aggregation is worse than
possible bias from these narrowly specified estimators. Somewhat surprisingly, the
results indicate that zonal models often outperform the individual-observation
models, especially when using an aggregate model that incorporates intrazonal
variance of the explanatory variables.
Casey, James F.; Vukina, Tomislav; Danielson, Leon E., "The Economic Value of
Hiking: Further Considerations of Opportunity Cost of Time in Recreational Demand
Models," Journal of Agricultural and Applied Economics, 27(2), December
1995, pp. 658-68.
Abstract: The paper tests two alternative specifications for the
opportunity cost of time in travel cost models. The standard travel cost survey
design is enriched to include a contingent valuation type question about peoples'
willingness to accept compensation to forgo a precisely defined recreational
experience. It is hypothesized that individually revealed value of time more
appropriately reflects the opportunity costs of time associated with a particular
aspect of recreation than the wage rate which measures the trade-off between work
and leisure, generally. The results seem to indicate a better overall fit for the
models with the elicited value of individual consumer's time than for the models
with the more traditional hourly earnings (wage rates). The importance of the
correct measurement of the opportunity cost time is illustrated by showing that
estimated consumer surpluses based on two different value of time measurements
differ significantly.
Randall, Alan, "A Difficulty with the Travel Cost Method," Land
Economics, 70(1), February 1994, pp. 88-96.
Abstract: Instead of observable prices of recreational visits,
travel cost method researchers are obliged to substitute researcher assigned
visitation cost estimates. The author argues that visitation costs are inherently
subjective but are ordinally measurable so long as the cost increases with
distance travelled. It follows that the traditional travel cost method yields only
ordinally measurable welfare estimates. The household production function
formulation of the travel cost method 'resolves' this problem only by imposing
severe and untestable analytical restrictions. The travel cost method cannot
serve as a stand-alone technique for estimating recreation benefits; rather, it
must be calibrated using information generated with fundamentally different
methods.
Hellerstein, Daniel, "Intertemporal Data and Travel Cost Analysis,"
Environmental and Resource Economics, 3(2), April 1993, pp. 193-207.
Hellerstein, Daniel; Mendelsohn, Robert, "A Theoretical Foundation for Count
Data Models," American Journal of Agricultural Economics, 75(3), August
1993, pp. 604-11.
Abstract: This paper develops a theoretical foundation for using
count data models in travel cost analysis. Two micro models are developed: a
restricted choice model and a repeated discrete choice model. The authors show
that both models lead to identical welfare measures.
Morey, Edward R.; Rowe, Robert D.; Watson, Michael, "A Repeated Nested-Logit
Model of Atlantic Salmon Fishing," American Journal of Agricultural
Economics, 75(3), August 1993, pp. 578-92.
Abstract: Participation and site choice for Atlantic salmon
fishing are modeled in the context of a repeated three-level nested-logit model.
Consumer's surplus measures are derived for different levels of species
availability in the Penobscot River, the most important salmon river in New
England. For comparison, six other travel-cost models are estimated. These include
restrictive cases of the nested-logit model, a partial demand model, and two
single-site demand models. Comparisons across these models indicate the importance
of modeling the participation decision, including income effects, and of adopting
a nested-logit structure rather than a single-level logit structure.
Agnello, Richard J.; Han, Yunqi, "Substitute Site Measures in a Varying
Parameter Model with Application to Recreational Fishing," Marine Resource
Economics, 8(1), Spring 1993, pp. 65-77.
Abstract: This paper employs a varying parameter travel cost
model to determine the economic valuation of fishing trips and catch for a sample
of Long Island anglers. Substitution measures in the model are characterized in
terms of the number and the quality of proximate alternative sites. This
treatment of substitution as a site rather than an individual characteristic helps
to define a site's uniqueness and in addition provides a feasible means of
capturing substitution effects when measures of substitution at an individual
level are not available. Per trip consumer surplus and changes in consumer surplus
due to catch changes are computed and distinguished by controls for the
availability and quality of substitute sites. Consumer surplus and the valuation
of changes in catch are found to be substantially lower when controlling for
substitution effects which in agreement with most previous studies.
Smith, V. Kerry, "Welfare Effects, Omitted Variables, and the Extent of the
Market," Land Economics, 69(2), May 1993, pp. 121-31.
Abstract: This paper offers an economic interpretation of
Catherine L. Kling's (1989) finding that single-price change measures of consumer
surplus will provide an unbiased measure for a multiple-price change, provided the
prices are perfectly correlated. The explanation lies in recognizing that
correlation in this case serves to define the commodity extent-of-the-market.
Using this link, the paper demonstrates how the insights involved in defining
general equilibrium demand functions or equivalently residual demand models can be
adapted to fit the issues raised with travel cost models in accounting for the
effects of substitutes.
Dobbs, Ian M., "Adjusting for Sample Selection Bias in the Individual Travel
Cost Method," Journal of Agricultural Economics, 44(2), May 1993, pp.
335-42.
Dobbs, Ian M., "Individual Travel Cost Method: Estimation and Benefit
Assessment with a Discrete and Possibly Grouped Dependent Variable," American
Journal of Agricultural Economics, 75(1), February 1993, pp. 84-94.
Abstract: The trip/visit variable in the individual travel cost
method is often regarded as discrete. Furthermore, it is often reported in
surveys as a grouped variable (the number of visits reported falling into one of
several classes). This paper develops a travel cost model that takes account of
discreteness and grouping in both demand and benefit estimation. A case study and
associated simulations are then reported, which indicate the potential extent of
bias that may arise from ignoring discreteness/grouping in demand and benefit
estimation. The information loss involved in varying the size of visit classes is
also examined.
McConnell, K. E., "Model Building and Judgment: Implications for Benefit
Transfers with Travel Cost Models," Water Resources Research, 28(3), March
1992, pp. 695-700.
Hellerstein, Daniel, "The Treatment of Nonparticipants in Travel Cost Analysis
and Other Demand Models," Water Resources Research, 28(8), August 1992, pp.
1999-2004.
Cameron, Trudy Ann, "Combining Contingent Valuation and Travel Cost Data for
the Valuation of Nonmarket Goods," Land Economics, 68(3), August 1992, pp.
302-17.
Abstract: The travel cost method has long been used to infer the
economic value of nonmarket resources and public goods. More recently, contingent
valuation survey methods have gained popularity for eliciting these values. Here,
contingent valuation survey responses are combined with travel cost method data
on actual market behavior to estimate jointly both the parameters of the
underlying utility function and its corresponding ordinary demand function. This
is a prototypical empirical example of a new modeling strategy, variants of which
should prove useful in many applications, especially where reliance on a single
valuation method is undesirable.
Mendelsohn, Robert et al., "Measuring Recreation Values with Multiple
Destination Trips," American Journal of Agricultural Economics, 74(4),
November 1992, pp. 926-33.
Abstract: Traditional travel cost analysis has either ignored
multiple destination trips or arbitrarily allocated trip costs across visited
sites. In this paper, combinations of multiple destinations are treated as unique
sites and incorporated into a demand system. Empirical demand functions for
multiple destination trips that include Bryce National Park are estimated.
Consumer surplus calculations for single destination and multiple destination
trips are compared. Coauthors are John Hof, George Peterson, and Reed Johnson.
McConnell, K. E., "On-Site Time in the Demand for Recreation," American
Journal of Agricultural Economics, 74(4), November 1992, pp. 918-25.
Abstract: The standard travel cost model has treated on-site time
ambiguously over the years. This paper shows how to handle on-site time by
exploring the implications of two assumptions in the travel cost model: first,
people choose the amount of time that they spend on a site and, second, the time
spent on-site is exogenous. This paper uses a duality result to show that when
on-site time is chosen, the standard travel cost demand function takes a
particularly simple form. With slight modification, standard estimation and
welfare calculations continue to hold.
Hanley, Nick; Ruffell, Robin, "The Valuation of Forest Characteristics,"
Queen's Institute for Economic Research Discussion Paper: 849, March 1992, 45
pages.
Abstract: Most work on valuing the recreational benefits of
public forests has concentrated on arriving at consumers surplus per visit
figures, using either the travel cost method, or contingent valuation. We use
both methods to try and explain the variation in consumers surplus across
different forest types, by placing values on the physical characteristics of
individual forests. These characteristics are also used to explain total visits
to a given forest. Both maximum likelihood and ordinary least squares estimates
are presented.
Smith, V. Kerry, "Welfare Effects, Omitted Variables, and the Extent of the
Market," Resources for the Future, Quality of the Environment Division Discussion
Paper: 92 16, April 1992, 26 pages.
Abstract: This paper offers an economic interpretation of Kling's
finding that single price change measures of consumer surplus will provide an
unbiased measure for a multiple price change, provided the prices are perfectly
correlated. The explanation lies in recognizing that correlation in this case
serves to define the commodity extent of the market. Using this link, the paper
demonstrates how the insights involved in defining general equilibrium demand
functions or equivalently, residual demand models, can be adapted to fit the
issues raised with travel cost models in accounting for the effects of
substitutes. To illustrate the proposal, a comparison is offered between two
different price based ways of incorporating substitutes relative to the quantity
based residual demand framework proposed in the paper.
Smith, V. Kerry; Desvousges, William H., "The Generalized Travel Cost Model and
Water Quality Benefits: A Reconsideration," in Markandya, Anil, Richardson, Julie
(eds.) Environmental economics: A reader. New York: St. Martin's Press,
1992, pp. 184-93.
Willis, K. G., Garrod, G. D., "An Individual Travel Cost Method of Evaluating
Forest Recreation," Journal of Agricultural Economics; 42(1), January 1991,
pp. 33-42.
Abstract: Consumer surplus for outdoor recreation has
traditionally been estimated by a Clawson-Knetsch travel-cost method. This paper
presents zonal consumer-surplus estimates for visitors to a number of forests and
compares these estimates to those derirved from individual visitor observations.
Both travel-cost procedures are used to assess the magnitude of recreational
benefits and are found to produce widely different consumer-surplus estimates.
This raises questions about research methodology and has implications for the
value of recreation associated with forestry and its contributions to the rate of
return on forest investment.
Wetzel, James N., "The Welfare Effects of Omitting Substitute Prices and
Qualities from Travel Cost Models: Comment," Land Economics, 67(1),
February 1991, pp. 130-31.
Kling, Catherine L., "The Welfare Effects of Omitting Substitute Prices and
Qualities from Travel Cost Models: Reply," Land Economics, 67(1), February
1991, pp. 132-33.
Smith, V. Kerry; Palmquist, Raymond B.; Jakus, Paul, "Combining Farrell
Frontier and Hedonic Travel Cost Models for Valuing Estuarine Quality," Review
of Economics and Statistics, 73(4), November 1991, pp. 694-99.
Abstract: This paper extends the Brown-Mendelsohn hedonic travel
cost model by estimating the travel cost function for each recreationist as a
technically efficient frontier. It also constrains the marginal prices for
desirable characteristics to be nonnegative. The model is used to value
improvements in the quality of sport fishing in the Albemarle-Pamlico Estuary in
North Carolina. The application compares the performance of the frontier hedonic
travel cost with ordinary least squares estimates, and finds the former to be free
of problems identified in the literature and to provide more plausible and robust
benefit estimates for quality improvements.
Willis, Ken G.; Garrod, Guy, "Valuing Open Access Recreation on Inland
Waterways: On-Site Recreation Surveys and Selection Effects," Regional
Studies, 25(6), December 1991, pp. 511-24.
Abstract: In addition to forming an important part of the
nation's transport and drainage systems, Britain's network of inland waterways
provides considerable social benefits from its use in recreation. This paper
investigates the use of micro data on individual travel-cost observations to value
non-priced waterway recreation on a sample of sites throughout England. The use of
on-site recreation user surveys to value open-access facilities raise questions
about election effects. The magnitude of specification error is revealed and a
maximum-likelihood model corrects for bias. Results show that lower-bound
estimates of consumer surplus for recreation exceed government subsidies to
waterways and canals.
Parsons, George R., "A Note on Choice of Residential Location in Travel Cost
Demand Models," Land Economics, 67(3), August 1991, pp. 360-64.
Englin, Jeffrey; Mendelsohn, Robert, "A Hedonic Travel Cost Analysis for
Valuation of Multiple Components of Site Quality: The Recreation Value of Forest
Management," Journal of Environmental Economics and Management, 21(3),
November 1991, pp. 275-90.
Abstract: One benefit of managing forests is that one can alter
the qualities of sites. The value of changing site qualities, however, is
generally not known. This paper develops a formal hedonic travel cost model which
can be used to estimate the value of both marginal and non-marginal changes to
sites. The approach accommodates multiple simultaneous changes in site
characteristics. Estimating this model using a set of permits from wilderness
areas leads to revealed preference estimates of the recreational value of
clear-cuts, old-growth, and nine other wilderness attributes.
Eberle, W. David; Hayden, F. Gregory, "Critique of Contingent Valuation and
Travel Cost Methods for Valuing Natural Resources and Ecosystems," Journal of
Economic Issues, 25(3), September 1991, pp. 649-87.
Abstract: The critique of the contingent valuation method and
travel cost method as appraisal methodologies for measuring value of ecosystems
concludes neither method can be legitimized in a theoretical or applicable sense.
The first section critiques the contingent valuation and travel cost methods in
the context of the neoclassical paradigm. The second section applies psychometric
standards to evaluate the contingent valuation method. The final section applies
the principles of general systems analysis to the contingent valuation method
and travel cost method. The utilization of general systems analysis is
consistent with the understanding that ecosystems are systems which conform to
system principles.
Hellerstein, Daniel M., "Using Count Data Models in Travel Cost Analysis with
Aggregate Data," American Journal of Agricultural Economics, 73(3), August
1991, pp. 860-67.
Abstract: In order to control for censoring and the integer
nature of trip demand, the use of count data models in travel cost analysis is
attractive. Two such models, the Poisson and negative binomial, are discussed.
Robust estimation techniques that loosen potentially stringent distributional
assumptions are also reviewed. For illustrative purposes, several count data
models are used to estimate a county-level travel cost model using permit data
from the Boundary Waters Canoe Area.
Stynes, Daniel J., "A Note on Population Distributions and the Travel Cost
Method," in Johnson, Rebecca L., and Johnson, Gary V. (eds.) Economic valuation
of natural resources: Issues, theory, and applications. Social Behavior and
Natural Resources Series, Boulder and Oxford: Westview Press, 1990, pp.
139-49.
Agnello, R. J.; Han, Y., "Some Findings on the Valuation of Fishing Success in
a Multiple-Site Travel Cost Model," in Rodrigues, A. Guimaraes (ed.) Operations
research and management in fishing. NATO Advanced Science Institute Series E:
Applied Sciences vol. 189, Norwell, Mass., Dordrecht and London: Kluwer Academic
in cooperation with NATO Scientific Affairs Division, 1990, pp. 239-54.
Smith, V. Kerry, "Can We Measure the Economic Value of Environmental
Amenities?," Southern Economic Journal, 56(4), April 1990, pp. 856-78.
Abstract: This paper reviews the conceptual basis for valuing
environmental amenities and discusses travel cost recreation demand and hedonic
property value models as strategies that rely on observed choice to measure use
values for environmental resources. The growing importance of measuring nonuse
values is noted because people experience satisfaction from environmental
resources without actually using them. Nonuse values do not require a choice, so
measuring them requires analyzing other behavioral indicators: conversation and
the adaptations people make as they learn. Recent advances are described in using
surveys as conversational sources of information about people's values within a
contingent valuation framework.
McConnell, K. E., "Double Counting in Hedonic and Travel Cost Models," Land
Economics, 66(2), May 1990, pp. 121-27.
Abstract: When the value of access to a natural resource is
measured by different methods, double counting sometimes occurs. This paper shows
that, when travel cost models and hedonic models are used to measure the value of
access, the hedonic estimate includes the travel cost estimate. This result
extends to damages from pollution. Both travel cost models and hedonic models can
be exploited to measure the damages from pollution in a natural resource, but the
hedonic model provides a broader measure that incorporates the travel cost
estimate.
Loomis, John; Cooper, Joseph, "Comparison of Environmental Quality-Induced
Demand Shifts Using Time-Series and Cross-Section Data," Western Journal of
Agricultural Economics, 15(1), July 1990, pp. 83-90.
Abstract: Almost all applications of the Travel-Cost-Method
demand function which include site quality variable(s) are multisite models. The
results of this study serve as a note of warning that using the demand equation
derived from multisite cross- sectional data to perform a benefit-cost analysis of
changes in quality at a single site may not accurately predict the resulting
change in the number of trips to that site. In this situation, estimates of the
benefits of quality improvements may be unreliable.
Bell, Frederick W.; Leeworthy, Vernon R., "Recreational Demand by Tourists for
Saltwater Beach Days," Journal of Environmental Economics and Management,
18(3), May 1990, pp. 189-205.
Abstract: This analysis deals with tourists that come from
significant distances to use principally beach resources. As Smith and Kipp
(1980) have argued, those that use the conventional travel cost methods (TCM) do
not recognize its potential spatial limitations. One day trips as used by the TCM
are certainly inapplicable to those coming from significant distances, such as
tourists to Florida. The empirical data are consistent with the thesis that
annual consumer demand by individual tourists for Florida beach days is positively
related to travel cost per trip and inversely related to on-site cost per day.
There are compelling reasons for treating recreational decision-making for what we
call tourists differently than for residents or those traveling relatively short
distances. Employing the on-site cost demand curve for tourists using Florida's
beaches, we find the daily consumer surplus to be nearly $34.00.
Smith, V. Kerry; Kaoru, Yoshiaki, "Signals or Noise? Explaining the Variation
in Recreation Benefit Estimates," American Journal of Agricultural
Economics, 72(2), May 1990, pp. 419-33.
Abstract: This paper uses meta analysis to summarize the benefit
estimates derived from travel cost recreation demand models. After reviewing
approximately 200 published and unpublished studies prepared from 1970 to 1986, 77
were found to report either consumer surplus estimates or sufficient information
to derive them. Using these estimates of the consumer surplus per unit of use
from each study, it was possible to evaluate the influence of variables describing
the site characteristics, the activities undertaken at each site, the behavioral
assumptions, and the specification decisions. The findings provide clear support
for using econometric methods to summarize results from diverse empirical studies.
They highlight the important research issues in model development and offer a
consistency check to the procedures used in benefit transfer analyses for policy
evaluations.
Smith, V. Kerry; Kaoru, Yoshiaki, "What Have We Learned since Hotelling's
Letter? A Meta-analysis," Economics Letters, 32(3), March 1990, pp.
267-72.
Abstract: This paper reports the results of a meta-analysis of
the estimates of the price elasticity of demand for recreation sites using the
travel cost method. By using econometric methods to summarize empirical
literature, meta-analysis assists in identifying research conclusions despite the
non-experimental nature of most empirical research in economics. In this
application, the results suggest that modeling decisions based on theory, as well
as those relying on fitting criteria, were important influences to the estimated
price elasticities across studies.
McKean, John R.; Revier, Charles F., "Omitted Cross-Price Variable Biases in
the Linear Travel Cost Model: Correcting Common Misperceptions: An Extension,"
Land Economics, 66(4), November 1990, pp. 430-36.
Abstract: This paper extends the work by P. P. Caulkins, R. C.
Bishop, and N. W. Bouwes (1985) on the bias in site value measurement crated
when alternative site prices are omitted from the travel cost demand
specification. Caulkins, Bishop, and Bouwes's analysis does not treat the issue
of bias in the intercept since they adopt R. L. Gum and W. E. Martin's
(1975) procedure that discards the intercept estimate. The procedure limits the
applicability of Caulkins, Bishop, and Bouwes's findings. This paper reexamines
bias in both the intercept and demand slope estimates. It is shown that both
average and variance of price must be known in order to determine the direction
and amount of bias in consumer surplus.
Adamowicz, Wiktor L.; Fletcher, Jerald J.; Graham Tomasi, Theodore, "Functional
Form and the Statistical Properties of Welfare Measures," American Journal of
Agricultural Economics, 71(2), May 1989, pp. 414-21.
Abstract: This paper uses Monte Carlo analysis to compare the
variance of consumer's surplus for several functional forms for demand. Although
the semilog and linear forms fit the data well by statistical criteria, the
coefficients of variation for consumer's surplus generated by these forms were
substantially larger than for the double-log and linear-log forms. While this
paper is framed in the travel cost approach to recreational demand, there are
implications for the choice of functional form whenever the measure of interest is
a nonlinear transformation of the estimated parameters.
Kling, Catherine L., "A Note on the Welfare Effects of Omitting Substitute
Prices and Qualities from Travel Cost Models," Land Economics, 65(3),
August 1989, pp. 290-96.
Abstract: The bias to welfare estimates from omitting substitute
prices or qualities in travel cost models is examined. The presence of bias
depends on whether single or multiple site changes are examined and the degree of
correlation between the omitted and included prices. For a multiple site price or
quality change, even when omitted price is uncorrelated with included price,
welfare estimates may be biased. Alternatively, if omitted price is perfectly
correlated, the welfare measure may not be biased. The presence of the bias
depends equally on both the degree of correlation and whether a single or multiple
change occurs.
Smith, V. Kerry, "Taking Stock of Progress with Travel Cost Recreation Demand
Methods: Theory and Implementation," Marine Resource Economics, 6(4), 1989,
pp. 279-310.
Abstract: This article summarizes the conceptual development and
empirical implementation of the travel cost recreation demand model by (1)
describing its theoretical underpinnings, (2) outlining how theory must be adapted
for the needs imposed by available data, (3) explaining issues to be considered in
the future. Applications of the travel cost model have evolved from studies
conducted at an aggregate level with origin zone data to an almost exclusive focus
on micro data concentrating on individuals' recreational choices. These
applications have broad implications. They are among the most detailed and
extensive illustrations of models for corner solution and discrete choice problems
in microeconomics. Equally important, they explore the theoretical and practical
implications of the household production framework. Finally, they also provide
examples of how a commodity's quality can be considered as an argument in
describing individuals' consumption choices.
Wilman, Elizabeth A.; Perras, James, "The Substitute Price Variable in the
Travel Cost Equation," Canadian Journal of Agricultural Economics, 37(2),
July 1989, pp. 249-61.
Smith, V. Kerry, "Selection and Recreation Demand," American Journal of
Agricultural Economics, 70(1), February 1988, pp. 29-36.
Abstract: This article compares five methods for estimating
travel cost recreation demand models with microdata. The models are distinguished
by their treatme nt of selection effects that arise with on-site surveys. The
comparis on considers adjusting for selection effects in a variety of ways, in
cluding single and double selection rule models. Both parameter and c onsumer
surplus estimates are evaluated. The findings indicate that t he treatment of
selection effects alone is not important for this cas e. However, the choice of an
estimator does lead to large variations in per trip consumer surplus estimates.
Wilman, Elizabeth A.; Pauls, Richard J., "Sensitivity of Consumers' Surplus
Estimates to Variation in the Parameters of the Travel Cost Model," Canadian
Journal of Agricultural Economics, 35(1), March 1987, pp. 197-212.
Smith, V. Kerry; Kaoru, Yoshiaki, "The Hedonic Travel Cost Model: A View from
the Trenches," Land Economics, 63(2), May 1987, pp. 179-92.
Abstract: Concern over the theoretical framework underlying the
hedonic travel cost (HTC) model's implicit prices (as well as the process of
estimating these prices) and the definitions of the quanti ties of site
characteristics "consumed" by recreationists motivated this analysis. This
evaluation of the HTC model considers the implic ation of the definitions of price
and quantity measures for both the estimated demands for the characteristics of
recreation sites and for the benefit measures based on them. The authors' results
contrast wi th all the published applications of the HTC model. They indicate tha
t application of the model should not be regarded as a routine implem entation of
a hedonic price function.
Rosenthal, Donald H., "The Necessity for Substitute Prices in Recreation Demand
Analyses," American Journal of Agricultural Economics, 69(4), November
1987, pp. 828-37.
Abstract: Omitting substitute prices from a travel cost model is
shown to cause a significant bias in consumer surplus estimates. Three sets of
travel cost models are developed from a comm on database representing 60,000 day
users of U.S. Army Corps of Engin eer reservoirs in Kansas and Missouri. The first
set of models omitte d substitute prices; the latter two sets included them. An
analysis o f variance test showed that consumer surplus estimates from the first
set of models were significantly higher than the other two (F E 26.2 with 2, 20
degrees of freedom). The theoretical and practical implic ations of these findings
are discussed.
Wilman, Elizabeth A., "A Simple Repackaging Model of Recreational Choices,"
American Journal of Agricultural Economics, 69(3), August 1987, pp. 603-12.
Abstract: The traditional travel-cost model uses trips (or
visits) as its measure of quantity and travel cost per trip (or visit) as its
price. However, because many estimated demand curves do not hold visit length
constant, they cannot be used to value increments of use. The simple repackaging
model of J. Muellbauer (1974), and F. M. Fisher and K. Shell (1971) is used to
derive demand curves exhibiting constant visit length from demand curves
exhibiting variable visit length. The former allow the marginal quantity
valuations that are necessary for management decisions involving capacity or use.
Stynes, Daniel J.; Peterson, George L.; Rosenthal, Donald H., "Log
Transformation Bias in Estimating Travel Cost Models," Land Economics,
62(1), February 1986, pp. 94-103.
Kealy, Mary Jo; Bishop, Richard C., "Theoretical and Empirical Specifications
Issues in Travel Cost Demand Studies," American Journal of Agricultural
Economics, 68(3), August 1986, pp. 660-67.
Green, Trellis G., "Specification Considerations for the Price Variable in
Travel Cost Demand Models: Comment," Land Economics, 62(4), November 1986,
pp. 416-18.
Ward, Frank A., "Specification Considerations for the Price Variable in Travel
Cost Demand Models: Reply," Land Economics, 62(4), November 1986, pp.
419-21.
Caulkins, Peter P.; Bishop, Richard C.; Bouwes, Nicolaas, Sr., "The Travel Cost
Model for Lake Recreation: A Comparison of Two Methodsfor Incorporating Site
Quality and Substitution Effects," American Journal of Agricultural
Economics, 68(2), May 1986, pp. 291-97.
Abstract: This paper empirically illustrates how different
assumptions regardingrecreationists' decision-making behavior affect the predicted
changesin recreational activity, given a water quality improvement. A multinomial
logit model, which reallocates visits away from other sitesto the improved site,
predicts a smaller outward shift of the recreationist's demand curve than does the
more traditional travel costmodel, which does not assume any reallocation of
visits among sites.
Ward, Frank A.; Loomis, John B., "The Travel Cost Demand Model as an
Environmental Policy Assessment Tool: A Review of Literature," Western Journal
of Agricultural Economics, 11(2), December 1986, pp. 164-78.
Phillips, Richard A.; Silberman, Jonathan I., "Forecasting Recreation Demand:
An Application of the Travel Cost Model," Review of Regional Studies,
15(1), Winter 1985, pp. 20-25.
Samples, Karl C.; Bishop, Richard C., "Estimating the Value of Variations in
Anglers' Success Rates: An Application of the Multiple-Site Travel Cost Method,"
Marine Resource Economics, 2(1), 1985, pp. 55-74.
Caulkins, Peter P.; Bishop, Richard C.; Bouwes, Nicolaas W., "Omitted
Cross-Price Variable Biases in the Linear Travel Cost Model: Correcting Common
Misperceptions," Land Economics, 61(2), May 1985, pp. 182-87.
Smith, V. Kerry; Desvousges, William H., "The Generalized Travel Cost Model and
Water Quality Benefits: A Reconsideration," Southern Economic Journal,
52(2), October 1985, pp. 371-81.
Brown, Gardner M., Jr.; Mendelsohn, Robert, "The Hedonic Travel Cost Method,"
Review of Economics and Statistics, 66(3), August 1984, pp. 427-33.
Ward, Frank A., "Specification Considerations for the Price Variable in Travel
Cost Demand Models," Land Economics, 60(3), August 1984, pp. 301-05.
Ribaudo, Marc O.; Epp, Donald J., "The Importance of Sample Dicrimination in
Using the Travel Cost Method to Estimate the Benefits of Improved Water Quality,"
Land Economics, 60(4), November 1984, pp. 397-403.
Strong, Elizabeth J., "A Note on the Functional Form of Travel Cost Models with
Zones of Unequal Populations," Land Economics, 59(3), August 1983, pp.
342-49.
Menz, Fredric C., Wilton, Donald P., "Alternative Ways to Measure Recreation
Values by the Travel Cost Method," American Journal of Agricultural
Economics, 65(2), May 1983, pp. 332-36.
Vaughan, William J.; Russell, Clifford S.; Hazilla, Michael, "A Note on the Use
of Travel Cost Models with Unequal Zonal Populations: Comment," Land
Economics, 58(3), August 1982, pp. 400-407.
Bowes, Michael D.; Loomis, John B., "A Note on the Use of Travel Cost Models
with Unequal Zonal Populations: Reply," Land Economics, 58(3), August 1982,
pp. 408-10.
Christensen, Jens B.; Price, Colin, "A Note on the Use of Travel Cost Models
with Unequal Zonal Populations: Comment," Land Economics, 58(3), August
1982, pp. 395-99.
Allen, P. Geoffrey; Stevens, Thomas H.; Barrett, Scott A., "The Effects of
Variable Omission in the Travel Cost Technique," Land Economics, 57(2), May
1981, pp. 173-80.
Smith, V. Kerry, "Congestion, Travel Cost Recreational Demand Models, and
Benefit Evaluation [Estimating the Benefits of Recreation under Conditions of
Congestion].," Journal of Environmental Economics and Management, 8(1),
March 1981, pp. 92-96.
Bowes, Michael D.; Loomis, John B., "A Note on the Use of Travel Cost Models
with Unequal Zonal Populations," Land Economics, 56(4), Nov. 1980, pp.
465-70.
Smith, V. Kerry; Kopp, Raymond J., "The Spatial Limits of the Travel Cost
Recreational Demand Model," Land Economics, 56(1), Feb. 1980, pp.
64-72.
Smith, V. Kerry, "Travel Cost Demand Models for Wilderness Recreation: A
Problem of Non-Nested Hypotheses," Land Economics, 51(2), May 1975, pp.
103-11.