IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v26y1994i10p1625-1638.html
   My bibliography  Save this article

Benefits of Improved Water Quality: A Discrete Choice Analysis of Freshwater Recreational Demands

Author

Listed:
  • R S Tay

    (School of Accountancy and Business, Nanyang Technological University, 2263 Singapore)

  • P S McCarthy

    (Krannert School of Management, Purdue University, West Lafayette, IN 47907, USA)

Abstract

Discrete choice methodologies are increasingly being used to estimate multiple-sites recreational demands and evaluate the welfare effects of alternative environmental policies aimed at water quality improvements. In this study the authors use 1985 data on Indiana anglers to estimate a multinomial logit model of destination choice and compute the benefits of alternative water quality improvements. In general, the results indicate that anglers are reasonably sensitive to changes in water quality. The per-trip welfare gains from a 1% reduction in various pollutants range from 4.9 to 25.3 cents and a similar reduction in all pollutants increases per-trip welfare by 64.5 cents.

Suggested Citation

  • R S Tay & P S McCarthy, 1994. "Benefits of Improved Water Quality: A Discrete Choice Analysis of Freshwater Recreational Demands," Environment and Planning A, , vol. 26(10), pages 1625-1638, October.
    • Handle: RePEc:sae:envira:v:26:y:1994:i:10:p:1625-1638
    DOI: 10.1068/a261625
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a261625
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a261625?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Small, Kenneth A & Rosen, Harvey S, 1981. "Applied Welfare Economics with Discrete Choice Models," Econometrica, Econometric Society, vol. 49(1), pages 105-130, January.
    2. Peter P. Caulkins & Richard C. Bishop & Nicolaas W. Bouwes, 1986. "The Travel Cost Model for Lake Recreation: A Comparison of Two Methods for Incorporating Site Quality and Substitution Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 291-297.
    3. Unknown, 1986. "Letters," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 1(4), pages 1-9.
    4. Smith, V. Kerry & Kaoru, Yoshiaki, 1986. "Modeling recreation demand within a random utility framework," Economics Letters, Elsevier, vol. 22(4), pages 395-399.
    5. George R. Parsons & Mary Jo Kealy, 1992. "Randomly Drawn Opportunity Sets in a Random Utility Model of Lake Recreation," Land Economics, University of Wisconsin Press, vol. 68(1), pages 93-106.
    6. Ryuichi Kitamura & Lidia P. Kostyniuk & Kuo-Liang Ting, 1979. "Aggregation in Spatial Choice Modeling," Transportation Science, INFORMS, vol. 13(4), pages 325-342, November.
    7. George R. Parsons & Michael S. Needelman, 1992. "Site Aggregation in a Random Utility Model of Recreation," Land Economics, University of Wisconsin Press, vol. 68(4), pages 418-433.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anowar, Sabreena & Eluru, Naveen & Hatzopoulou, Marianne, 2017. "Quantifying the value of a clean ride: How far would you bicycle to avoid exposure to traffic-related air pollution?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 66-78.
    2. Tay, Richard & McCarthy, Patrick S. & Fletcher, Jerald J., 1996. "A portfolio choice model of the demand for recreational trips," Transportation Research Part B: Methodological, Elsevier, vol. 30(5), pages 325-337, October.
    3. Ojumu, Oluwagbemiga & Hite, Diane & Fields, Deacue, 2009. "Estimating Demand For Recreational Fishing In Alabama Using Travel Cost Model," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46858, Southern Agricultural Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phaneuf, Daniel James, 1997. "Generalized corner solution models in recreation demand," ISU General Staff Papers 1997010108000013022, Iowa State University, Department of Economics.
    2. Milon, J. Walter, 1988. "Travel Cost Methods For Estimating The Recreational Use Benefits Of Artificial Marine Habitat," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(1), pages 1-15, July.
    3. Jason C. Kinnell & Matthew F. Bingham & Ateesha F. Mohamed & William H. Desvousges & Thomas B. Kiler & Elizabeth K. Hastings & Karen T. Kuhns, 2006. "Estimating Site Choice Decisions for Urban Recreators," Land Economics, University of Wisconsin Press, vol. 82(2), pages 257-272.
    4. von Haefen, Roger H. & Domanski, Adam, 2018. "Estimation and welfare analysis from mixed logit models with large choice sets," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 101-118.
    5. Lupi, Frank & Feather, Peter M., 1997. "Using Partial Site Aggregation to Reduce Bias in Random Utility Travel Cost Models," Staff Paper Series 201220, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761, Elsevier.
    7. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    8. Domanski, Adam, 2009. "Estimating Mixed Logit Recreation Demand Models With Large Choice Sets," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49413, Agricultural and Applied Economics Association.
    9. Agimass, Fitalew & Lundhede, Thomas & Panduro, Toke Emil & Jacobsen, Jette Bredahl, 2018. "The choice of forest site for recreation: A revealed preference analysis using spatial data," Ecosystem Services, Elsevier, vol. 31(PC), pages 445-454.
    10. Jegnie, Alemken & Hailu, Atakelty & Burton, Michael P., 2017. "Boat-based and other recreational fishing in Western Australia: Analysis of site choice, access values and bag limit effects," Working Papers 257167, University of Western Australia, School of Agricultural and Resource Economics.
    11. Hicks, Robert L. & Holland, Daniel S. & Kuriyama, Peter T. & Schnier, Kurt E., 2020. "Choice sets for spatial discrete choice models in data rich environments," Resource and Energy Economics, Elsevier, vol. 60(C).
    12. Stafford, Tess M., 2018. "Accounting for outside options in discrete choice models: An application to commercial fishing effort," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 159-179.
    13. von Haefen, Roger H., 2003. "Incorporating observed choice into the construction of welfare measures from random utility models," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 145-165, March.
    14. Kaoru, Yoshiaki, 1995. "Measuring marine recreation benefits of water quality improvements by the nested random utility model," Resource and Energy Economics, Elsevier, vol. 17(2), pages 119-136, August.
    15. Huang, Ju-Chin & Nychka, Douglas W. & Smith, V. Kerry, 2008. "Semi-parametric discrete choice measures of willingness to pay," Economics Letters, Elsevier, vol. 101(1), pages 91-94, October.
    16. Needelman, Michael S. & Kealy, Mary Jo, 1995. "Recreational Swimming Benefits Of New Hampshire Lake Water Quality Policies: An Application Of A Repeated Discrete Choice Model," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-10, April.
    17. Moore, Rebecca & MacPherson, Alexander J. & Provencher, Bill, 2005. "A Dynamic Principal-Agent Model of Human-Mediated Aquatic Species Invasions," Staff Papers 12684, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    18. Yu Yu & Nita Umashankar & Vithala R. Rao, 2016. "Choosing the right target: Relative preferences for resource similarity and complementarity in acquisition choice," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1808-1825, August.
    19. Linwood Pendleton & Robert Mendelsohn, 2000. "Estimating Recreation Preferences Using Hedonic Travel Cost and Random Utility Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 89-108, September.
    20. Lew, Daniel K., 1999. "Multi-Purpose Trip Valuation in Recreation Demand Models: Some Methodological Approaches," 1999 Annual meeting, August 8-11, Nashville, TN 271486, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:26:y:1994:i:10:p:1625-1638. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.