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The Economic Value of Hiking: Further Considerations of Opportunity Cost of Time in Recreational Demand Models

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  • Casey, James F.
  • Vukina, Tomislav
  • Danielson, Leon E.

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.

Suggested Citation

  • Casey, James F. & Vukina, Tomislav & Danielson, Leon E., 1995. "The Economic Value of Hiking: Further Considerations of Opportunity Cost of Time in Recreational Demand Models," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 658-668, December.
    • Handle: RePEc:cup:jagaec:v:27:y:1995:i:02:p:658-668_02
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    References listed on IDEAS

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    1. V. Kerry Smith, 1993. "Nonmarket Valuation of Environmental Resources: An Interpretive Appraisal," Land Economics, University of Wisconsin Press, vol. 69(1), pages 1-26.
    2. Garey Durden & Jason F. Shogren, 1988. "Valuing Non-Market Recreation Goods: An Evaluative Survey of the Literature on the Travel Cost and Contingent Valuation Methods," The Review of Regional Studies, Southern Regional Science Association, vol. 18(3), pages 1-15, Fall.
    3. K. E. McConnell, 1992. "On-Site Time in the Demand for Recreation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 918-925.
    4. V. Kerry Smith & William H. Desvousges & Matthew P. McGivney, 1983. "The Opportunity Cost of Travel Time in Recreation Demand Models," Land Economics, University of Wisconsin Press, vol. 59(3), pages 259-278.
    5. Kenneth E. McConnell & Ivar Strand, 1981. "Measuring the Cost of Time in Recreation Demand Analysis: An Application to Sportfishing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 153-156.
    6. W. Douglass Shaw, 1992. "Searching for the Opportunity Cost of an Individual's Time," Land Economics, University of Wisconsin Press, vol. 68(1), pages 107-115.
    7. Frank J. Cesario, 1976. "Value of Time in Recreation Benefit Studies," Land Economics, University of Wisconsin Press, vol. 52(1), pages 32-41.
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    Cited by:

    1. Mikołaj Czajkowski & Marek Giergiczny & Jakub Kronenberg & Jeffrey Englin, 2019. "The Individual Travel Cost Method with Consumer-Specific Values of Travel Time Savings," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 961-984, November.
    2. Bowker, James Michael & Starbuck, C. Meghan & English, Donald B.K. & Bergstrom, John C. & Rosenberger, Randall S. & McCollum, Daniel W., 2009. "Estimating the Net Economic Value of National Forest Recreation: An Application of the National Visitor Use Monitoring Database," Faculty Series 59603, University of Georgia, Department of Agricultural and Applied Economics.
    3. Dietrich Earnhart, 2004. "Time is Money: Improved Valuation of Time and Transportation Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(2), pages 159-190, October.
    4. Ovaskainen, Ville & Neuvonen, Marjo & Pouta, Eija, 2012. "Modelling recreation demand with respondent-reported driving cost and stated cost of travel time: A Finnish case," Journal of Forest Economics, Elsevier, vol. 18(4), pages 303-317.
    5. Star, Megan & Rolfe, John & Brown, Julia, 2020. "From farm to fork: Is food tourism a sustainable form of economic development?," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 325-334.
    6. Ophelia Amo & Wisdom Akpalu & Daniel K. Twerefou & Godfred A. Bokpin, 2022. "Estimating the Economic Value of Health Walk on the Accra-Aburi Mountains Walkway in Ghana: An Individual Travel Cost Approach," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 9(1), pages 75-85, January.
    7. O'Garra, Tanya & Mourato, Susana & Pearson, Peter, 2008. "Investigating attitudes to hydrogen refuelling facilities and the social cost to local residents," Energy Policy, Elsevier, vol. 36(6), pages 2074-2085, June.
    8. Amoako-Tuffour, Joe & Martınez-Espineira, Roberto, 2008. "Leisure and the Opportunity Cost of Travel Time in Recreation Demand Analysis: A Re-Examination," MPRA Paper 8573, University Library of Munich, Germany.
    9. Rolfe, John & Prayaga, Prabha, 2007. "Estimating values for recreational fishing at freshwater dams in Queensland," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-18.

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