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Multi-destination and multi-purpose trip effects in the analysis of the demand for trips to a remote recreational site

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  • Roberto Martinez-Espineira
  • Joe Amoako-Tuffour

Abstract

One of the basic assumptions of the travel cost method for recreational demand analysis is that the travel cost is always incurred for a single purpose recreational trip. Several studies have skirted around the issue with simplifying assumptions and dropping observations considered as non-conventional holiday-makers or as non-traditional visitors from the sample. The effectof such simplifications on the benefit estimates remains conjectural. Given the remoteness of notable recreational parks, multi-destination or multi-purpose trips are not uncommon. This paper examines the consequences of allocating travel costs to a recreational site when some trips were taken for purposes other than recreation and/or included visits to other recreational sites. Using a multi-purpose weighting approach on data from Gros Morne National Park, Canada, we conclude that a proper correction for multi-destination or multi-purpose trip is more of what is needed to avoid potential biases in the estimated effects of the price (travel-cost) variable and of the income variable in the trip generation equation.

Suggested Citation

  • Roberto Martinez-Espineira & Joe Amoako-Tuffour, 2008. "Multi-destination and multi-purpose trip effects in the analysis of the demand for trips to a remote recreational site," EERI Research Paper Series EERI_RP_2008_19, Economics and Econometrics Research Institute (EERI), Brussels.
  • Handle: RePEc:eei:rpaper:eeri_rp_2008_19
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    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2008_19.pdf
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    Cited by:

    1. Lienhoop, Nele & Ansmann, Till, 2011. "Valuing water level changes in reservoirs using two stated preference approaches: An exploration of validity," Ecological Economics, Elsevier, vol. 70(7), pages 1250-1258, May.
    2. Lyssenko, Nikita & Martinez-Espineira, Roberto, 2009. "`Been there done that': Disentangling option value effects from user heterogeneity when valuing natural resources with a use component," MPRA Paper 21976, University Library of Munich, Germany, revised 08 Apr 2010.
    3. Mario du Preez & Stephen Hosking, 2011. "The value of the trout fishery at Rhodes, North Eastern Cape, South Africa: a travel cost analysis using count data models," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(2), pages 267-282.
    4. Deborah E. Lee & Mario du Preez & Stephen G. Hosking, 2011. "The recreational value of beaches in the Nelson Mandela Bay area, South Africa," Working Papers 239, Economic Research Southern Africa.

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    More about this item

    Keywords

    Travel cost method; multi-purpose trips; multi-destination trips; count data; consumer surplus; endogenous stratification;
    All these keywords.

    JEL classification:

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

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