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Benefits of Improved Water Quality: A Discrete Choice Analysis of Freshwater Recreational Demands

Author

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  • R S Tay

    (School of Accountancy and Business, Nanyang Technological University, 2263 Singapore)

  • P S McCarthy

    (Krannert School of Management, Purdue University, West Lafayette, IN 47907, USA)

Abstract

Discrete choice methodologies are increasingly being used to estimate multiple-sites recreational demands and evaluate the welfare effects of alternative environmental policies aimed at water quality improvements. In this study the authors use 1985 data on Indiana anglers to estimate a multinomial logit model of destination choice and compute the benefits of alternative water quality improvements. In general, the results indicate that anglers are reasonably sensitive to changes in water quality. The per-trip welfare gains from a 1% reduction in various pollutants range from 4.9 to 25.3 cents and a similar reduction in all pollutants increases per-trip welfare by 64.5 cents.

Suggested Citation

  • R S Tay & P S McCarthy, 1994. "Benefits of Improved Water Quality: A Discrete Choice Analysis of Freshwater Recreational Demands," Environment and Planning A, , vol. 26(10), pages 1625-1638, October.
    • Handle: RePEc:sae:envira:v:26:y:1994:i:10:p:1625-1638
    DOI: 10.1068/a261625
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    References listed on IDEAS

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    Cited by:

    1. Ojumu, Oluwagbemiga & Hite, Diane & Fields, Deacue, 2009. "Estimating Demand For Recreational Fishing In Alabama Using Travel Cost Model," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46858, Southern Agricultural Economics Association.
    2. Anowar, Sabreena & Eluru, Naveen & Hatzopoulou, Marianne, 2017. "Quantifying the value of a clean ride: How far would you bicycle to avoid exposure to traffic-related air pollution?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 66-78.
    3. Tay, Richard & McCarthy, Patrick S. & Fletcher, Jerald J., 1996. "A portfolio choice model of the demand for recreational trips," Transportation Research Part B: Methodological, Elsevier, vol. 30(5), pages 325-337, October.

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