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Evaluation of recreation benefit by household production function approach

Author

Listed:
  • Yasuhisa Hayashiyama

    (Tohoku University)

  • Katsuhito Nohara

    (Tohoku University)

Abstract

The travel cost method (TCM) is a revealed preference approach to evaluating the recreation benefit. The traditional application of the TCM is to measure the consumer surplus of recreation sites and activities by calculating the consumer surplus of the site as the area below the demand function and above the implicit price. However, TCM has a setup problem of choke price. The purpose of this paper is to propose the evaluating theory of recreation benefit of environmental quality improvements by household production function approach with revealed preference data. Our approach suggested is operational and allows to decide whether the behavior observed and the household production functions are consistent.

Suggested Citation

  • Yasuhisa Hayashiyama & Katsuhito Nohara, 2009. "Evaluation of recreation benefit by household production function approach," Economics Bulletin, AccessEcon, vol. 29(2), pages 693-701.
    • Handle: RePEc:ebl:ecbull:eb-09-00091
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P20.pdf
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    References listed on IDEAS

    as
    1. Timothy J. Bartik, 2008. "Evaluating the Benefits of Non-marginal Reductions in Pollution Using Information on Defensive Expenditures," Book chapters authored by Upjohn Institute researchers, in: Joseph Herriges & Catherine L. Kling (ed.),Revealed Preference Approaches to Environmental Valuation, volume 0, pages 459-475, W.E. Upjohn Institute for Employment Research.
    2. Bradford, David F. & Hildebrandt, Gregory G., 1977. "Observable preferences for public goods," Journal of Public Economics, Elsevier, vol. 8(2), pages 111-131, October.
    3. Ebert, Udo, 2007. "Revealed preference and household production," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 276-289, March.
    4. Alan Randall, 1994. "Difficulty with the Travel Cost Method," Land Economics, University of Wisconsin Press, vol. 70(1), pages 88-96.
    5. Herriges, Joseph A. & Kling, Catherine L., 1999. "Valuing Recreation and the Environment: Revealed Preference Methods in Theory and Practice, New Horizons in Environmental Economics," Staff General Research Papers Archive 12330, Iowa State University, Department of Economics.
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    Cited by:

    1. Tadahiro Okuyama, 2017. "A risk benefit calculation method based on consumer behavior and household risk production function," Economics Bulletin, AccessEcon, vol. 37(2), pages 645-652.

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    More about this item

    Keywords

    household production function; revealed preference; recreation benefit;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • D0 - Microeconomics - - General

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