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Comparing Travel Cost Models And The Precision Of Their Consumer Surplus Estimates: Albert Park And Maroondah Reservoir

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  • Nicola Lansdell
  • Lata Gangadharan

Abstract

This study examines different types of Travel Cost Models to estimate and compare the recreational values of two parks in Victoria, Australia: Maroondah Reservoir and Albert Park. Zonal Travel Cost models and a number of different functional forms are used in this study. Standard errors are used to estimate upper and lower bounds for the recreational value estimates, enabling comparison between the precision of the different types of Travel Cost Models and functional forms estimated. The double log functional form city zone Travel Cost Model was chosen as the best estimate for Albert Park's recrea‐tional value at $22.9 million per year. Maroondah Reservoir's best estimate is provided by the double log functional form regional zone Travel Cost Model at a value of $2.5 million per year, consider‐ably less than that of Albert Park. Albert Park is found to have a comparatively larger ‘proximity power’ (attracting many more visitors) while Maroondah Reservoir exhibited a larger degree of ‘pulling power’ (a higher proportion of its visitors travel further distances).

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  • Nicola Lansdell & Lata Gangadharan, 2003. "Comparing Travel Cost Models And The Precision Of Their Consumer Surplus Estimates: Albert Park And Maroondah Reservoir," Australian Economic Papers, Wiley Blackwell, vol. 42(4), pages 399-417, December.
    • Handle: RePEc:bla:ausecp:v:42:y:2003:i:4:p:399-417
    DOI: 10.1111/1467-8454.00207
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    4. Heagney, E.C. & Rose, J.M. & Ardeshiri, A. & KovaÄ , M., 2018. "Optimising recreation services from protected areas – Understanding the role of natural values, built infrastructure and contextual factors," Ecosystem Services, Elsevier, vol. 31(PC), pages 358-370.
    5. Zandi Solmaz & Limaei Soleiman Mohammadi & Amiri Neda, 2018. "An economic evaluation of a forest park using the individual travel cost method (a case study of Ghaleh Rudkhan forest park in northern Iran)," Environmental & Socio-economic Studies, Sciendo, vol. 6(2), pages 48-55, June.
    6. Pramod Lamsal & Kishor Atreya & Krishna Prasad Pant & Lalit Kumar, 2016. "Tourism and wetland conservation: application of travel cost and willingness to pay an entry fee at Ghodaghodi Lake Complex, Nepal," Natural Resources Forum, Blackwell Publishing, vol. 40(1-2), pages 51-61, February.
    7. Muhammad Rafiq & Shafiqullah, 2007. "Demand Analysis of Recreation Visits to Chitral Valley: A Natural Resource Management Perspective," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 971-984.
    8. Saúl Torres-Ortega & Rubén Pérez-Álvarez & Pedro Díaz-Simal & Julio Manuel De Luis-Ruiz & Felipe Piña-García, 2018. "Economic Valuation of Cultural Heritage: Application of Travel Cost Method to the National Museum and Research Center of Altamira," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    9. Himayatullah, 2003. "Economic Valuation of the Environment and the Travel Cost Approach: The Case of Ayubia National Park," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 537-551.
    10. Lavee, D. & Menachem, O., 2018. "Economic valuation of the existence of the southwestern basin of the Dead Sea in Israel," Land Use Policy, Elsevier, vol. 71(C), pages 160-169.
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    More about this item

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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