Demand and welfare effects in recreational travel models: Accounting for substitution between number of trips and days to stay
In this paper we present a non-linear demand system for households’ joint choice of number of trips and days to spend at a destination. The approach, which facilitates welfare analysis of exogenous policy and price changes, is used empirically to study the effects of an increased CO2 tax. In particular, we focus on the effect of including substitution between households choice of the number of trips and days to spend at a destination in the welfare analysis. The analysis reveals that the equivalent variation (EV) measure, for the count data demand system, can be seen as an upper bound for the households welfare loss. Approximating the welfare loss by the change in consumer surplus, accounting for the positive effect from longer stays, imposes a lower bound on the households welfare loss. The difference in the estimated loss measures, from the considered CO2 tax reform, is about 20%. This emphasizes the importance of accounting for substitutions toward longer stays in travel demand policy evaluations.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 46 (2012)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Murat K. Munkin & Pravin K. Trivedi, 1999. "Simulated maximum likelihood estimation of multivariate mixed-Poisson regression models, with application," Econometrics Journal, Royal Economic Society, vol. 2(1), pages 29-48.
- Jeffrey T. LaFrance & W. Michael Hanemann, 1989.
"The Dual Structure of Incomplete Demand Systems,"
Monash Economics Working Papers
archive-21, Monash University, Department of Economics.
- Douglas M. Larson, 1993. "Joint Recreation Choices and Implied Values of Time," Land Economics, University of Wisconsin Press, vol. 69(3), pages 270-286.
- Epstein, L, 1975. "A Disaggregate Analysis of Consumer Choice under Uncertainty," Econometrica, Econometric Society, vol. 43(5-6), pages 877-92, Sept.-Nov.
- Brannlund, Runar & Ghalwash, Tarek & Nordstrom, Jonas, 2007.
"Increased energy efficiency and the rebound effect: Effects on consumption and emissions,"
Elsevier, vol. 29(1), pages 1-17, January.
- Brännlund, Runar & Ghalwash, Tarek & Nordström, Jonas, 2004. "Increased Energy Efficiency and the Rebound Effect: Effects on consumption and emissions," Umeå Economic Studies 642, Umeå University, Department of Economics.
- J. R. Hicks, 1942. "Consumers' Surplus and Index-Numbers," Review of Economic Studies, Oxford University Press, vol. 9(2), pages 126-137.
- Falvey, Rodney E & Gemmell, Norman, 1996. "Are Services Income-Elastic? Some New Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(3), pages 257-69, September.
- Berman, Matthew D. & Kim, Hong Jin, 1999. "Endogenous On-Site Time In The Recreation Demand Model," 1999 Annual meeting, August 8-11, Nashville, TN 21616, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- K. E. McConnell, 1992. "On-Site Time in the Demand for Recreation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 918-925.
- Brännlund, Runar & Nordström, Jonas, 1999.
"Carbon Tax Simulations Using a Household Demand Model,"
Umeå Economic Studies
508, Umeå University, Department of Economics.
- Brannlund, Runar & Nordstrom, Jonas, 2004. "Carbon tax simulations using a household demand model," European Economic Review, Elsevier, vol. 48(1), pages 211-233, February.
- Larry G. Epstein, 1982. "Integrability of Incomplete Systems of Demand Functions," Review of Economic Studies, Oxford University Press, vol. 49(3), pages 411-425.
- Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-51, July.
- Melenberg, B. & van Soest, A.H.O., 1996.
"Parametric and semi-parametric modelling of vacation expenditures,"
Other publications TiSEM
14de3e83-71c1-4e9a-aa5e-3, Tilburg University, School of Economics and Management.
- Melenberg, Bertrand & van Soest, Arthur, 1996. "Parametric and Semi-parametric Modelling of Vacation Expenditures," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(1), pages 59-76, Jan.-Feb..
- Melenberg, B. & Van Soest, A., 1991. "Parametric and Semi-parametric Modelling of Vocation Expenditures," Papers 9144, Tilburg - Center for Economic Research.
- Melenberg, B. & van Soest, A.H.O., 1991. "Parametric and semi-parametric modelling of vacation expenditures," Discussion Paper 1991-44, Tilburg University, Center for Economic Research.
- Hilger, James & Englin, Jeffrey, 2009. "Utility theoretic semi-logarithmic incomplete demand systems in a natural experiment: Forest fire impacts on recreational values and use," Resource and Energy Economics, Elsevier, vol. 31(4), pages 287-298, November.
- Wang, Peiming, 2003. "A bivariate zero-inflated negative binomial regression model for count data with excess zeros," Economics Letters, Elsevier, vol. 78(3), pages 373-378, March.
- Jeffrey Englin & Thomas Holmes & Rebecca Niell, 2006. "Alternative Models of Recreational Off-Highway Vehicle Site Demand," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(4), pages 327-338, December.
- Ozuna, Teofilo, Jr & Gomez, Irma Adriana, 1994. "Estimating a System of Recreation Demand Functions Using a Seemingly Unrelated Poisson Regression Approach," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 356-60, May.
- Jeffrey Englin & Peter Boxall & David Watson, 1998. "Modeling Recreation Demand in a Poisson System of Equations: An Analysis of the Impact of International Exchange Rates," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 255-263.
- Matthew D. Berman & Hong Jin Kim, 1999. "Endogenous On-Site Time in the Recreation Demand Model," Land Economics, University of Wisconsin Press, vol. 75(4), pages 603-619.
- Gurmu, Shiferaw & Trivedi, Pravin K, 1996. "Excess Zeros in Count Models for Recreational Trips," Journal of Business & Economic Statistics, American Statistical Association, vol. 14(4), pages 469-77, October.
- Englin, Jeffrey & Shonkwiler, J S, 1995. "Estimating Social Welfare Using Count Data Models: An Application to Long-Run Recreation Demand under Conditions of Endogenous Stratification and Truncation," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 104-12, February.
- W. Douglass Shaw & Peter Feather, 1999. "Possibilities for Including the Opportunity Cost of Time in Recreation Demand Systems," Land Economics, University of Wisconsin Press, vol. 75(4), pages 592-602.
- Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
- Chib, Siddhartha & Winkelmann, Rainer, 2001. "Markov Chain Monte Carlo Analysis of Correlated Count Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 428-35, October.
- Rainer Winkelmann, 2004.
"Health care reform and the number of doctor visits-an econometric analysis,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 19(4), pages 455-472.
- Winkelmann, Rainer, 2001. "Health Care Reform and the Number of Doctor Visits - An Econometric Analysis," CEPR Discussion Papers 3021, C.E.P.R. Discussion Papers.
- Winkelmann, Rainer, 2001. "Health Care Reform and the Number of Doctor Visits - An Econometric Analysis," IZA Discussion Papers 317, Institute for the Study of Labor (IZA).
- Morey, Edward R. & Shaw, W. Douglass & Rowe, Robert D., 1991. "A discrete-choice model of recreational participation, site choice, and activity valuation when complete trip data are not available," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 181-201, March.
When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:46:y:2012:i:3:p:446-456. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.