Non market valuation travel cost
Download
1 / 15

Non-Market valuation: - PowerPoint PPT Presentation


  • 256 Views
  • Updated On :

Non-Market valuation: Travel Cost Dr John Tisdell Readings Ward, F.A. and D. Beal (2000). Valuing Nature with Travel Cost Models: A Manual . Edward Elgar, Cheltenham, U.K.Chapter 2.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Non-Market valuation:' - paul2


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Non market valuation travel cost l.jpg

Non-Market valuation:Travel Cost

Dr John Tisdell


Readings l.jpg
Readings

  • Ward, F.A. and D. Beal (2000). Valuing Nature with Travel Cost Models: A Manual. Edward Elgar, Cheltenham, U.K.Chapter 2.

  • Hanley, N. and C.L. Spash (1993). Cost-Benefit Analysis and the Environment. Edward Elgar, Cheltenham, U.K. Chapter 5.


Introduction l.jpg
Introduction

  • Notion:

    The basic premise of the approach is that the cost of travel is a proxy for the value of a recreational site.

    The number or trips and so travel expenditure will decrease as distance increases.


Development l.jpg
Development

  • Hotelling (1947) US National Parks.

  • Clawson and Knetch (1966) developed the zonal methodology.

    • Measurement of cost at a zonal level

    • A group from the same area would pay marginally more if moved to another zone.

  • Development since the 1960’s

    • Individual travel cost analysis

    • Value of time – opportunity cost – opportunity cost of travel time.

    • Incorporating multi-site or multi-purpose trips.

      • Smith (1971) marginal cost of travel from last site…. Possible biases.

      • Stoeckl (1993) suggested proportioning the cost according to perceived importance.

    • The effect of substitutes

      • Ribaudo and Epp (1984) found strong correlation between substitute sites.

    • Visit length

    • Site quality and recreation congestion


Individual and zonal methods l.jpg
Individual and Zonal Methods

  • Zonal method requirements:

    • Limited to secondary data – trail registrations or camping permits.

    • The characteristics of the population are the same from one distance zone ot another.

    • Trips are of uniform duration and for a single purpose

    • Individuals travel the same distance and time.

  • Individual method requirements:

    • most visitors need to make more than one visit per year (time period).

    • Data has to be collected from surveys – often not possible due to budget/time/isolation factors.


  • Zonal method l.jpg
    Zonal Method

    Steps:

    • Collect secondary data on visitor characteristics

    • Construct 1st stage demand curve

    • Estimate a site demand data

    • Construct a 2nd stage demand curve (Resource demand curve)

    • Convert travel distances to dollars


    Slide7 l.jpg


    1st stage demand curve l.jpg
    1st stage demand Curve collected from from a site on the Darling Downs :

    200

    Distance

    Warwick

    150

    Dalby

    100

    Toowoomba

    50

    Trips per capita

    0.1

    0.2

    0.3


    Site demand curve l.jpg
    Site demand Curve collected from from a site on the Darling Downs :

    The premise of the zonal method is that the origins are homogeneous. In other words, if someone moved from Toowoomba to Warwick they would visit as often as the others living at Warwick.


    2 nd stage demand curve l.jpg
    2 collected from from a site on the Darling Downs :nd stage demand Curve

    150

    Distance added

    100

    50

    Total Trips per year

    10000

    21000

    35000


    Monetary conversion l.jpg
    Monetary conversion collected from from a site on the Darling Downs :

    Transportation costs

    Federal government rates ($ 1.20 per Km)

    Average number in car ( 3 people)

    Travel time

    guidelines suggest accounting for travel time, but this is highly correlated with distance

    Combine cost of travel and wages in zonal study

    Assume the average hourly wage rate is $20 and cars travel at an average of 50km/hr.


    Estimates l.jpg
    Estimates collected from from a site on the Darling Downs :

    Distance 50 = ((50 x $1.20) + (3 x $20.00))/50 = 2.40

    Distance 100 = ((100 x $1.20) + (3 x $20.00))/50 = 3.60

    Distance 150 = ((150 x $1.20) + (3 x $20.00))/50 = 4.80


    Aggregate monetary demand l.jpg
    Aggregate Monetary Demand collected from from a site on the Darling Downs :

    Added dollars

    4.80

    3.60

    2.40

    35,000

    10,000

    21,000

    Trips per year


    Assumptions l.jpg
    Assumptions collected from from a site on the Darling Downs :

    • Single destination trips and zero benefit from travel

    • Homogeneous demand within zones

    • Constant wage rates

    • Constant travel times and costs

    • Transferable benefit and cost functions


    Next lecture l.jpg
    Next lecture collected from from a site on the Darling Downs :

    • Relaxing the assumptions

    • Individual travel cost methods

    • Empirical examples.


    ad