IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v17y2000i1p89-108.html
   My bibliography  Save this article

Estimating Recreation Preferences Using Hedonic Travel Cost and Random Utility Models

Author

Listed:
  • Linwood Pendleton
  • Robert Mendelsohn

Abstract

Over the last decade, several authors have questioned thevalidity of the hedonic travel cost model, arguing instead that the random utility model is a superior method forvaluing recreational site attributes. This paper demonstrates that the two methods emanate from a similar utilitytheoretic framework; yet in practice these methods differ in the assumptions made in their application.Constraining the underlying utility functions to be consistent, both models are applied to the valuation ofrecreational site attributes in the Southeastern United States. The way in which each method estimates preferencesfor site attributes is shown to depend critically on the method and the functional form of theunderlying utility function. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Linwood Pendleton & Robert Mendelsohn, 2000. "Estimating Recreation Preferences Using Hedonic Travel Cost and Random Utility Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 89-108, September.
    • Handle: RePEc:kap:enreec:v:17:y:2000:i:1:p:89-108
    DOI: 10.1023/A:1008374423710
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1008374423710
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1008374423710?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yoshiaki Kaoru & V. Kerry Smith & Jin Long Liu, 1995. "Using Random Utility Models to Estimate the Recreational Value of Estuarine Resources," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 141-151.
    2. Arguea, Nestor M. & Hsiao, Cheng, 1993. "Econometric issues of estimating hedonic price functions : With an application to the U.S. market for automobiles," Journal of Econometrics, Elsevier, vol. 56(1-2), pages 243-267, March.
    3. Kling, Catherine L. & Bockstael, Nancy & Hanemann, W. Michael, 1987. "Estimating the Value of Water Quality Improvements in a Recreational Demand Framework," Staff General Research Papers Archive 1594, Iowa State University, Department of Economics.
    4. Hausman, Jerry A. & Leonard, Gregory K. & McFadden, Daniel, 1995. "A utility-consistent, combined discrete choice and count data model Assessing recreational use losses due to natural resource damage," Journal of Public Economics, Elsevier, vol. 56(1), pages 1-30, January.
    5. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    6. ANDERSON, Simon P. & de PALMA, André & THISSE, Jacques-François, 1992. "Interpretations of the logit discrete choice models and the theory of product differentiation," LIDAM Reprints CORE 1017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Linwood H. Pendleton & Robert Mendelsohn, 1998. "Estimating the Economic Impact of Climate Change on the Freshwater Sportsfisheries of the Northeastern U.S," Land Economics, University of Wisconsin Press, vol. 74(4), pages 483-496.
    8. LaFrance, Jeffrey T., 1985. "Linear demand functions in theory and practice," Journal of Economic Theory, Elsevier, vol. 37(1), pages 147-166, October.
    9. George R. Parsons & Michael S. Needelman, 1992. "Site Aggregation in a Random Utility Model of Recreation," Land Economics, University of Wisconsin Press, vol. 68(4), pages 418-433.
    10. Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-561, May.
    11. Smith, V Kerry & Palmquist, Raymond B & Jakus, Paul, 1991. "Combining Farrell Frontier and Hedonic Travel Cost Models for Valuing Estuarine Quality," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 694-699, November.
    12. Randall, Alan & Stoll, John R, 1980. "Consumer's Surplus in Commodity Space," American Economic Review, American Economic Association, vol. 70(3), pages 449-455, June.
    13. Willig, Robert D, 1976. "Consumer's Surplus without Apology," American Economic Review, American Economic Association, vol. 66(4), pages 589-597, September.
    14. Brown, Gardner M, Jr & Mendelsohn, Robert, 1984. "The Hedonic Travel Cost Method," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 427-433, August.
    15. Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers 477, Cowles Foundation for Research in Economics, Yale University.
    16. Mendelsohn, Robert, 1985. "Identifying Structural Equations with Single Market Data," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 525-529, August.
    17. Englin, Jeffrey & Mendelsohn, Robert, 1991. "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, Elsevier, vol. 21(3), pages 275-290, November.
    18. Nancy E. Bockstael & Ivar E. Strand, Jr., 1987. "The Effect of Common Sources of Regression Error on Benefit Estimates," Land Economics, University of Wisconsin Press, vol. 63(1), pages 11-20.
    19. Cropper, Maureen L, et al, 1993. "Valuing Product Attributes Using Single Market Data: A Comparison of Hedonic and Discrete Choice Approaches," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 225-232, May.
    20. George R. Parsons & Mary Jo Kealy, 1992. "Randomly Drawn Opportunity Sets in a Random Utility Model of Lake Recreation," Land Economics, University of Wisconsin Press, vol. 68(1), pages 93-106.
    21. Hausman, Jerry A, 1981. "Exact Consumer's Surplus and Deadweight Loss," American Economic Review, American Economic Association, vol. 71(4), pages 662-676, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Beatty, Timothy K.M. & Brozovic, Nicholas & Ward, Michael B., 2005. "Consumer Surplus Estimates and the Source of Regression Error," 2005 Annual meeting, July 24-27, Providence, RI 19477, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. 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.
    3. Chen Liang & Yili Hong & Pei-Yu Chen & Benjamin B. M. Shao, 2022. "The Screening Role of Design Parameters for Service Procurement Auctions in Online Service Outsourcing Platforms," Information Systems Research, INFORMS, vol. 33(4), pages 1324-1343, December.
    4. Mogas Amorós, Joan, 2016. "What are the social benefits of carbon sequestration?," Working Papers 2072/261536, Universitat Rovira i Virgili, Department of Economics.
    5. Shigeru Matsumoto, 2018. "Consumer valuation of energy-saving features of residential air conditioners with hedonic and choice models," Empirical Economics, Springer, vol. 55(4), pages 1779-1806, December.
    6. Barrios, Salvador & Ibañez Rivas, J. Nicolás, 2014. "Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe," Climate Change and Sustainable Development 165790, Fondazione Eni Enrico Mattei (FEEM).
    7. Dann Payares Ayola, 2012. "Estimación del potencial de valorización del suelo en Barranquilla en el periodo 2001-2011. Estimación de efectos fijos en datos de panel," Revista de Economía del Caribe 10851, Universidad del Norte.
    8. Salvador Barrios & J. Ibañez, 2015. "Time is of the essence: adaptation of tourism demand to climate change in Europe," Climatic Change, Springer, vol. 132(4), pages 645-660, October.
    9. Heagney, E.C. & Rose, J.M. & Ardeshiri, A. & Kovac, M., 2019. "The economic value of tourism and recreation across a large protected area network," Land Use Policy, Elsevier, vol. 88(C).
    10. Salvador Barrios & Juan Nicolas Ibañez Rivas, 2013. "Tourism demand, climatic conditions and transport costs: an integrated analysis for EU regions," JRC Research Reports JRC80898, Joint Research Centre.
    11. Englin, Jeffrey E. & McDonald, Jered M. & Moeltner, Klaus, 2006. "Valuing ancient forest ecosystems: An analysis of backcountry hiking in Jasper National Park," Ecological Economics, Elsevier, vol. 57(4), pages 665-678, June.
    12. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761, Elsevier.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761, Elsevier.
    2. Pendleton, Linwood, 1999. "Reconsidering the hedonic vs. RUM debate in the valuation of recreational environmental amenities," Resource and Energy Economics, Elsevier, vol. 21(2), pages 167-189, May.
    3. Smith, V. Kerry, 2000. "JEEM and Non-market Valuation: 1974-1998," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 351-374, May.
    4. Phaneuf, Daniel James, 1997. "Generalized corner solution models in recreation demand," ISU General Staff Papers 1997010108000013022, Iowa State University, Department of Economics.
    5. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    6. Daniel J. Phaneuf & Catherine L. Kling & Joseph A. Herriges, 2000. "Estimation and Welfare Calculations in a Generalized Corner Solution Model with an Application to Recreation Demand," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 83-92, February.
    7. Sudip Chattopadhyay, 2002. "Divergence in alternative Hicksian welfare measures: the case of revealed preference for public amenities," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(6), pages 641-666.
    8. Lupi, Frank & Feather, Peter M., 1997. "Using Partial Site Aggregation to Reduce Bias in Random Utility Travel Cost Models," Staff Paper Series 201220, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. Mora Rodriguez, Jhon James, 2013. "Introduccion a la teoría del consumidor [Introduction to Consumer Theory]," MPRA Paper 48129, University Library of Munich, Germany, revised 08 Jul 2013.
    10. Whitehead, John C. & Haab, Timothy C. & Huang, Ju-Chin, 2000. "Measuring recreation benefits of quality improvements with revealed and stated behavior data," Resource and Energy Economics, Elsevier, vol. 22(4), pages 339-354, October.
    11. Kaoru, Yoshiaki, 1995. "Measuring marine recreation benefits of water quality improvements by the nested random utility model," Resource and Energy Economics, Elsevier, vol. 17(2), pages 119-136, August.
    12. Alvarez, Sergio & Larkin, Sherry L. & Whitehead, John C. & Haab, Timothy C., 2012. "Substitution, Damages, and Compensation for Anglers due to Oil Spills:The case of the Deepwater Horizon," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124779, Agricultural and Applied Economics Association.
    13. W. Shaw & Michael Ozog, 1999. "Modeling Overnight Recreation Trip Choice: Application of a Repeated Nested Multinomial Logit Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(4), pages 397-414, June.
    14. Sandström, Mikael, 1996. "Recreational Benefits from Improved Water Quality: A Random Utility Model of Swedish Seaside Recreation," SSE/EFI Working Paper Series in Economics and Finance 121, Stockholm School of Economics.
    15. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    16. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    17. Veisten, Knut, 2007. "Contingent valuation controversies: Philosophic debates about economic theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 204-232, April.
    18. Agimass, Fitalew & Lundhede, Thomas & Panduro, Toke Emil & Jacobsen, Jette Bredahl, 2018. "The choice of forest site for recreation: A revealed preference analysis using spatial data," Ecosystem Services, Elsevier, vol. 31(PC), pages 445-454.
    19. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    20. von Haefen, Roger H., 2003. "Incorporating observed choice into the construction of welfare measures from random utility models," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 145-165, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:17:y:2000:i:1:p:89-108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.