Estimating the Value of Travel Time to Recreational Sites Using Revealed Preferences
AbstractThe opportunity Value of Travel Time (VTT) is one of the most important parts of the total cost of day-long recreational activities and arguably the most difficult to estimate. While numerous studies have criticized the use of salaries to proxy the relevant shadow values, a consensus on an alternative measure still has to emerge. This paper uses a revealed preference approach to estimate the VTT for recreational trips by modeling individuals' preferences for toll roads and deriving their willingness-to-pay to reduce travel time. Our case-study sites are three beaches located in the Italian Riviera Romagnola, whose road network is a mix of toll and free access roads. By carrying-out face-to-face interviews, we reconstruct respondents' routes, indentify their time-cost trade-offs and ultimately estimate their VTT. Results show considerable heterogeneity in values with the VTT for day-long recreational visits being significantly higher than the one of longer holidays.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2013.64.
Date of creation: Jun 2013
Date of revision:
Value of Time; Value of Travel Time Savings; Recreation Demand Models; Revealed Preferences; Willingness to Pay Space;
Find related papers by JEL classification:
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-28 (All new papers)
- NEP-DCM-2013-07-28 (Discrete Choice Models)
- NEP-TRE-2013-07-28 (Transport Economics)
- NEP-TUR-2013-07-28 (Tourism Economics)
- NEP-URE-2013-07-28 (Urban & Real Estate Economics)
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