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Distributional Effects of Entry Fees and Taxation for Financing Public Beaches

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  • Frank Lupi
  • Roger H. von Haefen
  • Li Cheng

Abstract

We use a multisite general population demand model to assess welfare and distributional effects of entrance pricing and taxation to finance Great Lakes beach management. We compare revenue resulting from uniform entry (i.e., gate) fees across sites to additional state income tax generating equivalent revenues. We present empirical demand elasticities with respect to total prices, including entry fees and elasticities with respect only to fees. We find that demand is price elastic for total trips and individual sites, with individual sites being significantly more elastic. Over a broad range of entry fees, total trip and site demands are fee elastic.

Suggested Citation

  • Frank Lupi & Roger H. von Haefen & Li Cheng, 2022. "Distributional Effects of Entry Fees and Taxation for Financing Public Beaches," Land Economics, University of Wisconsin Press, vol. 98(3), pages 509-519.
    • Handle: RePEc:uwp:landec:v:98:y:2022:i:3:p:509-519
    Note: DOI: 10.3368/le.98.3.083121-0105
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    References listed on IDEAS

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    1. Shonkwiler, John Scott & Shaw, W. Douglass, 1996. "Hurdle Count-Data Models In Recreation Demand Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(2), pages 1-10, December.
    2. 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.
    3. Christopher G. Leggett & Nora Scherer & Timothy C. Haab & Ryan Bailey & Jason P. Landrum & Adam Domanski, 2018. "Assessing the Economic Benefits of Reductions in Marine Debris at Southern California Beaches: A Random Utility Travel Cost Model," Marine Resource Economics, University of Chicago Press, vol. 33(2), pages 133-153.
    4. K. E. McConnell, 1992. "On-Site Time in the Demand for Recreation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 918-925.
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    Cited by:

    1. Boudreaux, Greg & Lupi, Frank & Sohngen, Brent & Xu, Alan, 2023. "Measuring beachgoer preferences for avoiding harmful algal blooms and bacterial warnings," Ecological Economics, Elsevier, vol. 204(PA).

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    More about this item

    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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