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Modelling recreation demand with respondent-reported driving cost and stated cost of travel time: A Finnish case

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  • Ovaskainen, Ville
  • Neuvonen, Marjo
  • Pouta, Eija

Abstract

As the price of recreational visits is unobservable and commonly represented by researcher-assigned travel cost estimates, welfare change estimates generated by the travel cost method are ordinally measurable (Randall, 1994). For a potential solution to the resulting calibration problem we use respondent-reported driving costs and the stated cost of travel time, measured by willingness to pay to reduce travel time, to represent the individual trip price. On-site data from a hiking area in Finland are used. After considering visitors’ perceptions of driving cost and travel time, models with individual driving costs and stated cost of travel time are compared to standard specifications based on a uniform rate of driving cost and wage-based time cost. The use of respondent-reported driving costs appears to be a working approach for calibrating the benefit measures. The stated cost of time was logically related to visitor and trip characteristics and had plausible effects on benefit estimates.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:foreco:v:18:y:2012:i:4:p:303-317
    DOI: 10.1016/j.jfe.2012.06.001
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    References listed on IDEAS

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    Cited by:

    1. Nordén, Anna & Coria, Jessica & Jönsson, Anna Maria & Lagergren, Fredrik & Lehsten, Veiko, 2017. "Divergence in stakeholders' preferences: Evidence from a choice experiment on forest landscapes preferences in Sweden," Ecological Economics, Elsevier, vol. 132(C), pages 179-195.
    2. King, Steven & Fraser, Iain, 2013. "Divestment of the English Forestry Estate: An economically sound choice?," Ecological Economics, Elsevier, vol. 88(C), pages 25-31.
    3. Breen, Benjamin & Curtis, John & Hynes, Stephen, 2017. "Recreational Use of Public Waterways and the Impact of Water Quality," Papers WP552, Economic and Social Research Institute (ESRI).
    4. Curtis, John & Stanley, Brian, 2015. "Water Quality and Recreational Angling Demand in Ireland," Papers WP521, Economic and Social Research Institute (ESRI).
    5. Juutinen, Artti & Kosenius, Anna-Kaisa & Ovaskainen, Ville, 2014. "Estimating the benefits of recreation-oriented management in state-owned commercial forests in Finland: A choice experiment," Journal of Forest Economics, Elsevier, vol. 20(4), pages 396-412.
    6. Simões, Paula & Barata, Eduardo & Cruz, Luís, 2013. "Joint estimation using revealed and stated preference data: An application using a national forest," Journal of Forest Economics, Elsevier, vol. 19(3), pages 249-266.
    7. repec:eee:ecolec:v:148:y:2018:i:c:p:1-14 is not listed on IDEAS

    More about this item

    Keywords

    Travel cost method; Travel time; Data enrichment; Stated preference; Count data models;

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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