EXERCISE #1 (Zonal Travel Cost Method)
Exercise. Estimate the recreational value of the Parc d'Aiguestortes i Estany de Sant Maurici national park, according the data provided
Data. In [excel] format
Solution. See the two variants from the [excel] file
Additional question. Assuming a discount rate of 10%, what would be the overall capital value of the park to society, attending to its current recreational service?
EXERCISE #2 (Individual Travel Cost Method)
Exercise. Using 5000 artificial agents, embed each one with a number of trips per a given period to consume a local good, and a cost per trip. Estimate mean of the consumer surplus associated with the the probability of taking an additional trip
Data. Generate the data with the software of your choice
Solution. In [NLogit-Limdep] [text] format. N.B. Lim files can be opened as a txt files
Additional question. Adapt the data for an inflated count data model
EXERCISE #3 (Individual Travel Cost Method)
Exercise. Estimate mean of the consumer surplus associated with the the probability of taking an additional trip to collect mushrooms in the county of Solsones, in central Catalonia
Solution. In [NLogit-Limdep] format. N.B. Lim files can be opened as a txt files
Additional question. Consider two values, the pure recreational one (enjoying a day in the forest) and the collected mushrooms one, with an average value of 10 m.u. per trip. If the estimated mean consumer surplus per trip from the exercise is 34 m.u. is the pure recreational value (a) 34 m.u., (b) 24 m.u., or (c) 44 m.u.? In other words, the question asks to consider whether the value of 34 m.u. estimated from the regression analysis does or does not include the value of mushrooms at 10 m.u. Concisely explain why.
SOFTWARE
- NLogit-Limdep (free student version and manuals [broken link])
READINGS
Michael D. Creel, John B. Loomis (1990) Theoretical and empirical advantages of truncated count data estimators for analysis of deer hunting in California. American Journal of Agricultural Economics, 72(2):434-41
- Harold Hotelling (1947) “The Economics of Public Recreation.” In The Prewitt Report. Department of the Interior, Washington, D.C.
David Hoyos, Pere Riera (2013) Convergent validity between revealed and stated recreation demand data: some empirical evidence from the Basque Country, Spain. Journal of Forest Economics, 19(3):234-248
Pere Riera, Kenneth E McConnell, Marek Giergiczny, Pierre-Alexandre Mahieu (2011) Applying the Travel Cost Method to fifty one Minorca beaches. Some policy results. In: International Handbook on Non-Marketed Environmental Valuation. Edited by Bennett Jeffrey. Cheltenham: Edward Elgar; 60-73.
Robert J. Smith (1971) The evaluation of recreation benefits: The Clawson method in practice. Urban Studies, 8(2):89-102