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.
Non-Market valuation:Travel Cost
Dr John Tisdell
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.
Per Capita Demand for Visitors to a Camp Ground on the Darling Downs
Trips per capita
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.
Total Trips per year
Federal government rates ($ 1.20 per Km)
Average number in car ( 3 people)
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.
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
Trips per year