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Estimating the Value of Travel Time to Recreational Sites Using Revealed Preferences

Author

Listed:
  • Carlo Fezzi

    (CSERGE, School of Environmental Sciences, University of East Anglia)

  • Ian J. Bateman

    (CSERGE, School of Environmental Sciences, University of East Anglia)

Abstract

The opportunity Value of Travel Time (VTT) is one of the most important parts of the total cost of day-long recreational activities and arguably the most difficult to estimate. While numerous studies have criticized the use of salaries to proxy the relevant shadow values, a consensus on an alternative measure still has to emerge. This paper uses a revealed preference approach to estimate the VTT for recreational trips by modeling individuals' preferences for toll roads and deriving their willingness-to-pay to reduce travel time. Our case-study sites are three beaches located in the Italian Riviera Romagnola, whose road network is a mix of toll and free access roads. By carrying-out face-to-face interviews, we reconstruct respondents' routes, indentify their time-cost trade-offs and ultimately estimate their VTT. Results show considerable heterogeneity in values with the VTT for day-long recreational visits being significantly higher than the one of longer holidays.

Suggested Citation

  • Carlo Fezzi & Ian J. Bateman, 2013. "Estimating the Value of Travel Time to Recreational Sites Using Revealed Preferences," Working Papers 2013.64, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2013.64
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    References listed on IDEAS

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    Cited by:

    1. Wolff, Hendrik, 2014. "Value of time: Speeding behavior and gasoline prices," Journal of Environmental Economics and Management, Elsevier, vol. 67(1), pages 71-88.

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    More about this item

    Keywords

    Value of Time; Value of Travel Time Savings; Recreation Demand Models; Revealed Preferences; Willingness to Pay Space;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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