Hostname: page-component-586b7cd67f-rdxmf Total loading time: 0 Render date: 2024-11-28T00:06:40.088Z Has data issue: false hasContentIssue false
  • English
  • Français

The Economic Value of Hiking: Further Considerations of Opportunity Cost of Time in Recreational Demand Models

Published online by Cambridge University Press:  28 April 2015

James F. Casey ,
Tomislav Vukina  and
Leon E. Danielson
James F. Casey
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University
Tomislav Vukina
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University
Leon E. Danielson
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University
Get access Rights & Permissions [Opens in a new window]

Abstract

The paper tests two alternative specifications for the opportunity cost of time in travel cost models. The standard travel cost survey design is enriched to include a contingent valuation type question about peoples' willingness to accept compensation to forgo a precisely defined recreational experience. It is hypothesized that individually revealed value of time more appropriately reflects the opportunity costs of time associated with a particular aspect of recreation than the wage rate which measures the trade-off between work and leisure generally. The results seem to indicate a better overall fit for the models with the elicited value of individual consumer's time than for the models with the more traditional hourly earnings (wage rates). The importance of the correct measurement of the opportunity cost time is illustrated by showing that estimated consumer surpluses based on two different value of time measurements differ significantly.

Keywords

recreation demandtravel cost modelvalue of time
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 2 , December 1995 , pp. 658 - 668
Copyright
Copyright © Southern Agricultural Economics Association 1995

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bockstael, N.E., McConnel, K.E., and Strand, I.E.. “Recreation.” in Braden, J.B. and CD. Kolstad editors: Measuring the Demand for Environmental Quality. Elsevier Science Publishers (North Holland), 1991: 227–270.Google Scholar
Bockstael, N.E., Strand, I.E., and Hanemann, W.H.. “Time and the Recreation Demand Model.” Amer. J. Agr. Econ. 69,2(1987): 293–302.CrossRefGoogle Scholar
Cesario, F.J. “Value of Time in Recreation Benefit Studies.” Land Econ. 52(Feb. 1976): 32–41.CrossRefGoogle Scholar
Durden, G. and Shogren, J.. “Valuing Non-Market Recreation Goods: An Evaluative Survey of the Literature on the Travel Cost and Contingent Valuation Methods.” Rev. Regional Studies 18(No.3, 1988): 1–15.CrossRefGoogle Scholar
Freeman, A.M.The Measurement of Environmental and Resource Values: Theory and Methods. Resources for the Future, Washington, D.C. 1993.Google Scholar
McConnell, K.E. “On-Site Time in the Demand for Recreation”. Amer. J. Agr. Econ. 74(No.4, 1992): 918–925.CrossRefGoogle Scholar
McConnell, K.E. and Strand, I.. “Measuring the Cost of Time in Recreation Demand Analysis: An Application to Sportfishing”. Amer. J. Agr. Econ. 63(1981): 153–156.CrossRefGoogle Scholar
Shaw, D.W. “Searching for the Opportunity Cost of an Individual's Time”. Land Econ. 68(1, 1992): 107-15.CrossRefGoogle Scholar
Smith, V.K. “Nonmarket Valuation of Environmental Resources: An Interpretive Appraisal.” Land Econ. 69(1, 1993): 1–26.CrossRefGoogle Scholar
Smith, V.K., DesVousges, W.H., and McGivney, M.P.. “The Opportunity Cost Of Travel Time in Recreation Demand Models.” Land Econ. 59(1983): 259–278.CrossRefGoogle Scholar
Ward, F.A. and Loomis, J.B.. “The Travel Cost Demand Model as an Environmental Policy Assessment Tool: A Review of Literature.” W. J. Agr. Econ. 11,2(1986): 164–1781.Google Scholar