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Welfare measurement bias in household and on-site surveying of water-based recreation : an application to Lake Sevan, Armenia

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  • Meisner, Craig
  • Wang, Hua
  • Laplante, Benoit

Abstract

Studies comparing household surveys with on-site interceptor surveys have typically accounted for over-sampling avid users in the on-site interceptor surveys (that is, endogenous stratification). However, these studies have typically not accounted for the possibility that the household sample may contain a large presence of zero observations. If a large proportion of the population does not recreate at the site for any value of the price vector, this inflation of zero observations leads to biased welfare estimates and an inadequate comparison with the on-site survey. In this paper, the authors estimate and compare three models which correct for these measurement issues in both the household and on-site surveys. Results from an application to recreation at Lake Sevan (Armenia) indicate that household consumers'surplus is not statistically different from that of the on-site survey once the authors account for zero-inflation in the household sample and endogenous stratification in the on-site sample.

Suggested Citation

  • Meisner, Craig & Wang, Hua & Laplante, Benoit, 2006. "Welfare measurement bias in household and on-site surveying of water-based recreation : an application to Lake Sevan, Armenia," Policy Research Working Paper Series 3932, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3932
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    1. Hynes, Stephen & Gaeven Rainey, & O’Reilly, Paul, 2016. "Estimating the demand for Sea Angling in Irish Waters using on-site travel cost models," Working Papers 262595, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    2. Marini Govigli, Valentino & Górriz-Mifsud, Elena & Varela, Elsa, 2019. "Zonal travel cost approaches to assess recreational wild mushroom picking value: Trade-offs between online and onsite data collection strategies," Forest Policy and Economics, Elsevier, vol. 102(C), pages 51-65.
    3. Hynes, Stephen & O'Reilly, Paul & Corless, Rebecca, 2015. "A comparison of an on-site versus a household survey approach to modelling the demand for recreational angling," Working Papers 262591, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    4. Hynes, Stephen & O’Reilly, Paul & Corless, Rebecca, 2015. "An on-site versus a household survey approach to modelling the demand for recreational angling: Do welfare estimates differ?," Ecosystem Services, Elsevier, vol. 16(C), pages 136-145.
    5. Seong-Hoon Cho & J.M. Bowker & Roland K. Roberts & Seunggyu Kim & Taeyoung Kim & Dayton M. Lambert, 2015. "Effects on Consumer Welfare of Visitor Satisfaction with Recreation Information Availability: A Case Study of the Allegheny National Forest," Tourism Economics, , vol. 21(4), pages 853-869, August.

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    Keywords

    Transport Economics Policy&Planning; Economic Theory&Research; Science Education; Scientific Research&Science Parks; Roads&Highways;
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