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Distributional Effects of Entry Fees and Taxation for Financing Public Beaches

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

Abstract

We use a detailed multi-site recreation demand model and general population dataset to assess the demand, welfare and distributional impacts of entrance pricing and taxation schemes to finance Great Lakes beach management. We compare the revenue resulting from uniform entry fees, or gate fees, across sites to additional state income tax that would generate equivalent revenues. We present empirical demand elasticities with respect to total prices inclusive of entry fees as well as elasticities with respect only to the fees. We find that demand is price elastic for total trips and for individual sites, with individual sites being significantly more elastic. However, over a broad range of entry fees, both total trips and individual site demands are elastic with respect to entry fees.

Suggested Citation

  • Lupi, Frank & von Haefen, Roger H. & Cheng, Li, 2021. "Distributional Effects of Entry Fees and Taxation for Financing Public Beaches," CEnREP Working Papers 340055, North Carolina State University, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:nccewp:340055
    DOI: 10.22004/ag.econ.340055
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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

    Keywords

    Public Economics;

    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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