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Up the Proverbial Creek without a Paddle: Accounting for Variable Participant Skill Levels in Recreational Demand Modelling

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  • Stephen Hynes

    ()

  • Nick Hanley
  • Eoghan Garvey

Abstract

We adapt the standard random utility model to take account of the heterogeneity of recreational preferences by using what we call a “skilled-based conditional logit framework”. By separating out our sample of whitewater kayakers into two exogenously identifiable groups (based on their skill level) and running separate conditional logits for each group we are able to take account of the fact that kayakers of different skill levels are looking for different characteristics from the whitewater site they choose to visit. We find that not taking into account the differences in the skill of the kayakers and the grade of the river will result in an overestimation of the welfare estimates associated with improvements to lower grade whitewater sites (which are frequented by basic/intermediated proficiency level kayakers) and underestimating welfare estimates associated with changes in the attributes of higher grade whitewater sites (which are frequented by advanced proficiency level kayakers). Copyright Springer Science+Business Media, Inc. 2007

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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 36 (2007)
Issue (Month): 4 (April)
Pages: 413-426

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Handle: RePEc:kap:enreec:v:36:y:2007:i:4:p:413-426

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: preference heterogeneity; Random Utility Model; skill levels; whitewater kayaking; Q51 Q56;

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  1. Adamowicz, Wiktor & Swait, Joffre & Boxall, Peter & Louviere, Jordan & Williams, Michael, 1997. "Perceptions versus Objective Measures of Environmental Quality in Combined Revealed and Stated Preference Models of Environmental Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 65-84, January.
  2. Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
  3. Nick Hanley & David Bell & Begona Alvarez-Farizo, 2003. "Valuing the Benefits of Coastal Water Quality Improvements Using Contingent and Real Behaviour," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(3), pages 273-285, March.
  4. Stephen Hynes & Nick Hanley, 2004. "Measuring the opportunity cost of time in recreation demand modelling: an application to a random utility model of whitewater kayaking in Ireland," Working Papers 0087, National University of Ireland Galway, Department of Economics, revised 2004.
  5. Feather, Peter & Shaw, W. Douglass, 1998. "Estimating The Cost Of Leisure Time For Recreation Demand Models," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20855, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Provencher, Bill & Bishop, R.C.Richard C., 2004. "Does accounting for preference heterogeneity improve the forecasting of a random utility model? A case study," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 793-810, July.
  7. Shaw, W. Douglass & Jakus, Paul M., 1996. "Travel Cost Models Of The Demand For Rock Climbing," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), October.
  8. Morey, Edward R., 1981. "The demand for site-specific recreational activities: A characteristics approach," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 345-371, December.
  9. Adamowicz, Wiktor L., 1994. "Habit Formation And Variety Seeking In A Discrete Choice Model Of Recreation Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(01), July.
  10. Vincent G. Munley & V. Kerry Smith, 1976. "Learning-by-Doing and Experience: The Case of Whitewater Recreation," Land Economics, University of Wisconsin Press, vol. 52(4), pages 545-553.
  11. Nick Hanley & Gary Koop & Begoña Álvarez-Farizo & Robert E. Wright & Ceara Nevin, 2001. "Go climb a mountain: an application of recreation demand modelling to rock climbing in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 36-52.
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Cited by:
  1. Vanja Westerberg & Robert Lifran & Soren Boye Olsen, 2010. "To restore or not? A valuation of social and ecological functions of the Marais des Baux wetland in Southern France," Working Papers 39687, Institut National de la Recherche Agronomique, France.
  2. Melstrom, Richard T. & Lupi, Frank, 2013. "Using a Control Function to Resolve the Travel Cost Endogeneity Problem in Recreation Demand Models," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149732, Agricultural and Applied Economics Association.
  3. Chen, Min & Lupi, Frank, 2013. "Modeling Long Overnight Trips by Chaining Recreation Sites," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150489, Agricultural and Applied Economics Association.

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