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Comparing Travel Cost Models and the Precision of their Consumer Surplus Estimates: Albert Park and Maroondah Reservoir

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  • Gangadharan, L.
  • Lansdell, N.

Abstract

This study examines different types of Travel Cost Models to estimate and compare the recreational values of two parks in Victoria, Australia: Maroondah Reservoir and Albert Park. Zonal Travel Cost models and a number of different functional forms are used in this study. Standard errors are used to estimate upper and lower bounds for the recreational value estimates, enabling comparison between the precision of the different types of Travel Cost Models and functional forms estimated. The double log functional form city zone Travel Cost Model provides the most precise estimate for Albert Park's recreational value at $19.2 million per year. Maroondah Reservoir's most precise estimate is provided by the double log functional form regional zone Trave Cost Model at a value of $2.2 million per year, considerably less than that of Albert Park. Albert Park is found to have a comparatively larger 'proximity power' (attracting many more visitors) while Maroondah Reservoir exhibited a larger degree of 'pulling power' (a higher proportion of its visitors travel further distances).

Suggested Citation

  • Gangadharan, L. & Lansdell, N., 2001. "Comparing Travel Cost Models and the Precision of their Consumer Surplus Estimates: Albert Park and Maroondah Reservoir," Department of Economics - Working Papers Series 796, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:796
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    2. Heagney, E.C. & Rose, J.M. & Ardeshiri, A. & Kovač, M., 2018. "Optimising recreation services from protected areas – Understanding the role of natural values, built infrastructure and contextual factors," Ecosystem Services, Elsevier, vol. 31(PC), pages 358-370.
    3. Zandi Solmaz & Limaei Soleiman Mohammadi & Amiri Neda, 2018. "An economic evaluation of a forest park using the individual travel cost method (a case study of Ghaleh Rudkhan forest park in northern Iran)," Environmental & Socio-economic Studies, Sciendo, vol. 6(2), pages 48-55, June.
    4. Pramod Lamsal & Kishor Atreya & Krishna Prasad Pant & Lalit Kumar, 2016. "Tourism and wetland conservation: application of travel cost and willingness to pay an entry fee at Ghodaghodi Lake Complex, Nepal," Natural Resources Forum, Blackwell Publishing, vol. 40(1-2), pages 51-61, February.
    5. Muhammad Rafiq & Shafiqullah, 2007. "Demand Analysis of Recreation Visits to Chitral Valley: A Natural Resource Management Perspective," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 971-984.
    6. Lavee, D. & Menachem, O., 2018. "Economic valuation of the existence of the southwestern basin of the Dead Sea in Israel," Land Use Policy, Elsevier, vol. 71(C), pages 160-169.
    7. M. Pirikiya & H. Amirnejad & J. Oladi & K. Ataie Solout, 2016. "Determining the recreational value of forest park by travel cost method and defining its effective factors," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 62(9), pages 399-406.
    8. Himayatullah Khan, 2006. "Willingness to Pay for Margalla Hills National Park: Evidence from the Travel Cost Method," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 11(2), pages 43-70, Jul-Dec.
    9. Saúl Torres-Ortega & Rubén Pérez-Álvarez & Pedro Díaz-Simal & Julio Manuel De Luis-Ruiz & Felipe Piña-García, 2018. "Economic Valuation of Cultural Heritage: Application of Travel Cost Method to the National Museum and Research Center of Altamira," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    10. Himayatullah, 2003. "Economic Valuation of the Environment and the Travel Cost Approach: The Case of Ayubia National Park," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 537-551.
    11. Giovanni B Concu, 2009. "Measuring Environmental Externality Spillovers through Choice Modelling," Environment and Planning A, , vol. 41(1), pages 199-212, January.

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    More about this item

    Keywords

    COSTS ; CONSUMERS ; TRAVEL;
    All these keywords.

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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