IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v73y1991i4p694-99.html
   My bibliography  Save this article

Combining Farrell Frontier and Hedonic Travel Cost Models for Valuing Estuarine Quality

Author

Listed:
  • Smith, V Kerry
  • Palmquist, Raymond B
  • Jakus, Paul

Abstract

This paper extends the Brown-Mendelsohn hedonic travel cost model by estimating the travel cost function for each recreationist as a technically efficient frontier. It also constrains the marginal prices for desirable characteristics to be nonnegative. The model is used to value improvements in the quality of sport fishing in the Albemarle-Pamlico Estuary in North Carolina. The application compares the performance of the frontier hedonic travel cost with ordinary least squares estimates, and finds the former to be free of problems identified in the literature and to provide more plausible and robust benefit estimates for quality improvements. Copyright 1991 by MIT Press.

Suggested Citation

  • Smith, V Kerry & Palmquist, Raymond B & Jakus, Paul, 1991. "Combining Farrell Frontier and Hedonic Travel Cost Models for Valuing Estuarine Quality," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 694-699, November.
    • Handle: RePEc:tpr:restat:v:73:y:1991:i:4:p:694-99
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0034-6535%28199111%2973%3A4%3C694%3ACFFAHT%3E2.0.CO%3B2-W&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. V. Kerry Smith & Yoshiaki Kaoru, 1987. "The Hedonic Travel Cost Model: A View from the Trenches," Land Economics, University of Wisconsin Press, vol. 63(2), pages 179-192.
    2. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    3. Kling, Catherine L. & Bockstael, Nancy & Hanemann, W. Michael, 1987. "Estimating the Value of Water Quality Improvements in a Recreational Demand Framework," Staff General Research Papers Archive 1594, Iowa State University, Department of Economics.
    4. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    5. Raymond J. Kopp, 1981. "The Measurement of Productive Efficiency: A Reconsideration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(3), pages 477-503.
    6. Brown, Gardner M, Jr & Mendelsohn, Robert, 1984. "The Hedonic Travel Cost Method," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 427-433, August.
    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. Aiken, Deborah Vaughn, 2006. "Application of the distance function to nonmarket valuation of environmental goods and services: An illustrative example," Ecological Economics, Elsevier, vol. 60(1), pages 168-175, November.
    2. Nerlove, Marc, 1995. "Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers," European Economic Review, Elsevier, vol. 39(9), pages 1697-1716, December.
    3. Pendleton, Linwood, 1999. "Reconsidering the hedonic vs. RUM debate in the valuation of recreational environmental amenities," Resource and Energy Economics, Elsevier, vol. 21(2), pages 167-189, May.
    4. Erda Wang & Jianhua Wei & Jiawei Zhu, 2017. "The effects of improving coastal park attributes on the recreation demand—A case study in Dalian China," Tourism Economics, , vol. 23(1), pages 133-149, February.
    5. Whitehead, John C. & Haab, Timothy C. & Huang, Ju-Chin, 2000. "Measuring recreation benefits of quality improvements with revealed and stated behavior data," Resource and Energy Economics, Elsevier, vol. 22(4), pages 339-354, October.
    6. Anton Nahman & Dan Rigby, 2008. "Valuing Blue Flag Status And Estuarine Water Quality In Margate, South Africa1," South African Journal of Economics, Economic Society of South Africa, vol. 76(4), pages 721-737, December.
    7. Stoeckl, Natalie & Farr, Marina & Larson, Silva & Adams, Vanessa M. & Kubiszewski, Ida & Esparon, Michelle & Costanza, Robert, 2014. "A new approach to the problem of overlapping values: A case study in Australia׳s Great Barrier Reef," Ecosystem Services, Elsevier, vol. 10(C), pages 61-78.
    8. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    9. Scrogin, David & Hofler, Richard & Boyle, Kevin J. & Milon, J. Walter, 2004. "On The Frontier Of Generating Revealed Preference Choice Sets: An Efficient Approach," 2004 Annual meeting, August 1-4, Denver, CO 20134, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. 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.
    11. 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.

    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. Kilmer, Richard L. & Armbruster, Walter J., 1984. "Methods For Evaluating Economic Efficiency In Agricultural Marketing," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-9, July.
    2. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    3. 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.
    4. Anthony Amoah & Peter G. Moffatt, 2021. "Willingness to pay for reliable piped water services: evidence from urban Ghana," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 805-829, October.
    5. 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).
    6. Pendleton, Linwood, 1999. "Reconsidering the hedonic vs. RUM debate in the valuation of recreational environmental amenities," Resource and Energy Economics, Elsevier, vol. 21(2), pages 167-189, May.
    7. 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.
    8. Pantzios, Christos J. & Rozakis, Stelios & Tzouvelekas, Vangelis, 2006. "Evading Farm Support Reduction via Efficient Input Use: The Case of Greek Cotton Growers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(3), pages 555-574, December.
    9. Bakh, M. Elahi & Islam, M. Serajul, 2005. "Technical And Allocative Efficiency Of Growing Wheat In Northwest Districts Of Bangladesh," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 28(1-2), pages 1-11, December.
    10. Bujosa Bestard, Angel & Font, Antoni Riera, 2009. "Environmental diversity in recreational choice modelling," Ecological Economics, Elsevier, vol. 68(11), pages 2743-2750, September.
    11. Ribaudo, Marc O. & Hellerstein, Daniel, 1992. "Estimating Water Quality Benefits: Theoretical and Methodological Issues," Technical Bulletins 157031, United States Department of Agriculture, Economic Research Service.
    12. Harabi, Najib, 1994. "Technischer Fortschritt in der Schweiz: Empirische Ergebnisse aus industrieökonomischer Sicht [Technischer Fortschritt in der Schweiz:Empirische Ergebnisse aus industrieökonomischer Sicht]," MPRA Paper 6725, University Library of Munich, Germany.
    13. Bhattacharyya, Aditi & Kutlu, Levent & Sickles, Robin C., 2018. "Pricing Inputs and Outputs: Market prices versus shadow prices, market power, and welfare analysis," Working Papers 18-009, Rice University, Department of Economics.
    14. Salvador Barrios & J. Nicolás Ibañez Rivas, 2014. "Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe," Working Papers 2014.20, Fondazione Eni Enrico Mattei.
    15. Martin Halla & Friedrich Schneider & Alexander Wagner, 2013. "Satisfaction with democracy and collective action problems: the case of the environment," Public Choice, Springer, vol. 155(1), pages 109-137, April.
    16. Kuwayama, Yusuke & Olmstead, Sheila & Zheng, Jiameng, 2022. "A more comprehensive estimate of the value of water quality," Journal of Public Economics, Elsevier, vol. 207(C).
    17. Cropper, Maureen L., 2000. "Has Economic Research Answered the Needs of Environmental Policy?," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 328-350, May.
    18. Akridge, Jay T., 1987. "Productive Efficiency in Multiproduct Firms: The Case of Retail Fertilizer Plants," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269957, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Smith, V. Kerry, 1997. "Time and the Valuation of Environmental Resources," RFF Working Paper Series dp-98-07, Resources for the Future.
    20. Justo De Jorge Moreno & Cesar Camison Zorzona & Juan Muro Romero & Leopoldo Laborda Castillo, 2015. "Effects Of Public Capital On Economic Growth And Productivity In Spain During The Period 1980-2007," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(4), pages 67-89, December.

    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:tpr:restat:v:73:y:1991:i:4:p:694-99. 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: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    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.