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Estimating Recreation Preferences Using Hedonic Travel Cost and Random Utility Models

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  • Linwood Pendleton
  • Robert Mendelsohn

Abstract

Over the last decade, several authors have questioned thevalidity of the hedonic travel cost model, arguing instead that the random utility model is a superior method forvaluing recreational site attributes. This paper demonstrates that the two methods emanate from a similar utilitytheoretic framework; yet in practice these methods differ in the assumptions made in their application.Constraining the underlying utility functions to be consistent, both models are applied to the valuation ofrecreational site attributes in the Southeastern United States. The way in which each method estimates preferencesfor site attributes is shown to depend critically on the method and the functional form of theunderlying utility function. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Linwood Pendleton & Robert Mendelsohn, 2000. "Estimating Recreation Preferences Using Hedonic Travel Cost and Random Utility Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 89-108, September.
  • Handle: RePEc:kap:enreec:v:17:y:2000:i:1:p:89-108
    DOI: 10.1023/A:1008374423710
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    References listed on IDEAS

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    Cited by:

    1. Mogas Amorós, Joan, 2016. "What are the social benefits of carbon sequestration?," Working Papers 2072/261536, Universitat Rovira i Virgili, Department of Economics.
    2. Englin, Jeffrey E. & McDonald, Jered M. & Moeltner, Klaus, 2006. "Valuing ancient forest ecosystems: An analysis of backcountry hiking in Jasper National Park," Ecological Economics, Elsevier, vol. 57(4), pages 665-678, June.
    3. Salvador Barrios & J. Nicolás Ibañez Rivas, 2014. "Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe," Working Papers 2014.20, Fondazione Eni Enrico Mattei.
    4. Salvador Barrios & J. Ibañez, 2015. "Time is of the essence: adaptation of tourism demand to climate change in Europe," Climatic Change, Springer, vol. 132(4), pages 645-660, October.
    5. Beatty, Timothy K.M. & Brozovic, Nicholas & Ward, Michael B., 2005. "Consumer Surplus Estimates and the Source of Regression Error," 2005 Annual meeting, July 24-27, Providence, RI 19477, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Dann Payares Ayola, 2012. "Estimación del potencial de valorización del suelo en Barranquilla en el periodo 2001-2011. Estimación de efectos fijos en datos de panel," REVISTA DE ECONOMÍA DEL CARIBE 010851, UNIVERSIDAD DEL NORTE.
    7. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761 Elsevier.
    8. Salvador Barrios & Juan Nicolas Ibañez Rivas, 2013. "Tourism demand, climatic conditions and transport costs: an integrated analysis for EU regions," JRC Working Papers JRC80898, Joint Research Centre (Seville site).

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    Keywords

    hedonic travel cost; RUM; recreation demand;

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