Valuation of Trips to Second Homes in the Country: Do Environmental Attributes Matter?
Although spending time in a summer home is a popular leisure activity in many developed countries, little is known about the welfare impacts of such recreation in monetary terms. We use data from Finland to provide first estimates of the extent of the recreation benefits obtained from visits to second homes. Special emphasis is placed on how environmental attributes of second homes, such as the presence of algae, the availability of a beach, and electricity, influence the recreation value of visits. The impacts are valued through revealed preferences using the travel cost method. We estimate the recreation value to be about EUR 170 – 205 per trip if a summer home is electrified, if a beach is available and if algae do not prevent aquatic recreation. The aggregate nonmarket benefits of the use of the current summer home stock are considerable – about EUR 500 million per annum. The presence of algae that prevent aquatic recreation decreases the value per trip by 40 percent, and the lack of a beach reduces it by 45 percent; electrification increases the value by 3–5 percent. These impacts should be balanced against the social costs of second homes when designing environmental policies on leisure-time housing.
|Date of creation:||2011|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
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.:
- John A. Downing, 2009.
"Valuing Water Quality as a Function of Water Quality Measures,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 91(1), pages 106-123.
- Egan, Kevin J. & Herriges, Joseph A. & Kling, Catherine L. & Downing, John A., 2004. "Valuing Water Quality As a Functionof Water Quality Measures," Staff General Research Papers Archive 12210, Iowa State University, Department of Economics.
- Egan, Kevin J. & Herriges, Joseph A. & Kling, Catherine L. & Downing, John A., 2009. "Valuing Water Quality as a Function of Water Quality Measures," ISU General Staff Papers 200901010800001393, Iowa State University, Department of Economics.
- Blackwell, Boyd, 2007. "The Value of a Recreational Beach Visit: An Application to Mooloolaba Beach and Comparisons with other Outdoor Recreation Sites," Economic Analysis and Policy, Elsevier, vol. 37(1), pages 77-98, March.
- Tanya O’Garra, 2009. "Bequest Values for Marine Resources: How Important for Indigenous Communities in Less-Developed Economies?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(2), pages 179-202, October.
- Jeffrey Englin & Klaus Moeltner, 2004. "The Value of Snowfall to Skiers and Boarders," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(1), pages 123-136, September.
- Loomis, John B. & Gonzalez-Caban, Armando & Englin, Jeffrey E., 2001. "Testing For Differential Effects Of Forest Fires On Hiking And Mountain Biking Demand And Benefits," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
- Ojumu, Oluwagbemiga & Hite, Diane & Fields, Deacue, 2009. "Estimating Demand For Recreational Fishing In Alabama Using Travel Cost Model," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46858, Southern Agricultural Economics Association.
- Palmquist, Raymond B., 2005. "Weak complementarity, path independence, and the intuition of the Willig condition," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 103-115, January.
- Daniel M. Hellerstein, 1991. "Using Count Data Models in Travel Cost Analysis with Aggregate Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 860-866.
- Hellerstein, Daniel, 1991. "Using Count Data Models in Travel Cost Analysis with Aggregate Data," MPRA Paper 25264, University Library of Munich, Germany.
- Chia-Yu Yeh & Timothy Haab & Brent Sohngen, 2006. "Modeling Multiple-Objective Recreation Trips with Choices Over Trip Duration and Alternative Sites," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(2), pages 189-209, 06.
- Whitehead, John C. & Haab, Timothy C. & Huang, Ju-Chin, 2000. "Measuring recreation benefits of quality improvements with revealed and stated behavior data," Resource and Energy Economics, Elsevier, vol. 22(4), pages 339-354, October.
- John C. Whitehead & Timothy C. Haab & Ju-Chin Huang, 1999. "Measuring Recreation Benefits of Quality Improvements with Revealed and Stated Behavior Data," Working Papers 9902, East Carolina University, Department of Economics.
- Vail, David & Hultkrantz, Lars, 2000. "Property rights and sustainable nature tourism: adaptation and mal-adaptation in Dalarna (Sweden) and Maine (USA)," Ecological Economics, Elsevier, vol. 35(2), pages 223-242, November. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ags:eaae11:114405. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.