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Leisure and the Opportunity Cost of Travel Time in Recreation Demand Analysis: A Re-Examination

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  • Amoako-Tuffour, Joe
  • Martınez-Espineira, Roberto

Abstract

Using count data models that account for zero-truncation, overdispersion, and endogenous stratification, this paper estimates the value of access to recreational parks. The focus is on the valuation of the opportunity cost of travel time within the cost of the trip and its effects on estimated consumer surplus. The fraction of hourly earnings that corresponds to the opportunity cost of travel time is endogenously estimated as a function of visitor characteristics, rather than fixed exogenously. We find that the relevant opportunity cost of time for most visitors represents a smaller fraction of their wage rate than commonly assumed previously.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:8573
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Rahman Khoshakhlagh & Seyed Vahid Safaeifard & Seyedeh Nasim Mirahmadi Sharifi, 2013. "Estimating Recreation Demand Function by Using Zero Truncated Poisson Distribution: A Case Study of Tehran Darband Site (Iran)," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 1(1), pages 11-20.
    3. Hynes, Stephen & Greene, William, 2011. "Estimating recreation demand with on-site panel data: An application of a latent class truncated and endogenously stratified count data model," Working Papers 148925, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    4. Mahadev Bhat & Ramachandra Bhatta & Mohamed Shumais, 2014. "Sustainable funding policies for environmental protection: the case of Maldivian atolls," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(1), pages 45-67, January.
    5. Anni Huhtala & Eija Pouta, 2009. "Benefit Incidence of Public Recreation Areas—Have the Winners Taken Almost All?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(1), pages 63-79, May.
    6. Ahlheim, Michael & Frör, Oliver & Heinke, Antonia & Duc, Nguyen Minh & Dinh, Pham Van, 2010. "Labour as a utility measure in contingent valuation studies: how good is it really?," FZID Discussion Papers 13-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).

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    More about this item

    Keywords

    value of time; endogenous stratification; on-site sampling; overdispersion; recreation demand; travel cost method;
    All these keywords.

    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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