IDEAS home Printed from https://ideas.repec.org/p/rff/dpaper/dp-98-07.html
   My bibliography  Save this paper

Time and the Valuation of Environmental Resources

Author

Listed:
  • Smith, V. Kerry

Abstract

This paper considers the modeling strategies that have been used to incorporate time in revealed and stated preference methods for valuing environmental resources. After reviewing a subset of the economic models for describing time as an input to household production; time in creating habits and persistence in demand for particular services of environmental resources, and time as offering an opportunity for future consumption, the overview suggests that time has been used as a complement in production or consumption to marketed goods in each of these frameworks. The paper suggests two possible alternatives. This structure along with further restrictions to preferences or technology implies that there are other strategies for using revealed preference data to measure the economic value of changes in environmental quality.

Suggested Citation

  • Smith, V. Kerry, 1997. "Time and the Valuation of Environmental Resources," RFF Working Paper Series dp-98-07, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-98-07
    as

    Download full text from publisher

    File URL: http://www.rff.org/RFF/documents/RFF-DP-98-07.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. George R. Parsons, 1991. "A Note on Choice of Residential Location in Travel Cost Demand Models," Land Economics, University of Wisconsin Press, vol. 67(3), pages 360-364.
    2. Gary S. Becker & Casey B. Mulligan, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 729-758.
    3. Shaw, W. Douglass & Jakus, Paul M., 1996. "Travel Cost Models Of The Demand For Rock Climbing," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), pages 1-10, October.
    4. Smith, V. Kerry & Osborne, Laura L., 1996. "Do Contingent Valuation Estimates Pass a "Scope" Test? A Meta-analysis," Journal of Environmental Economics and Management, Elsevier, vol. 31(3), pages 287-301, November.
    5. Cameron, Trudy Ann & Shaw, W. Douglass & Ragland, Shannon E. & Callaway, J. Mac & Keefe, Sally, 1996. "Using Actual And Contingent Behavior Data With Differing Levels Of Time Aggregation To Model Recreation Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-20, July.
    6. 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.
    7. Kenneth E. McConnell & Ivar Strand, 1981. "Measuring the Cost of Time in Recreation Demand Analysis: An Application to Sportfishing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 153-156.
    8. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1991. "Rational Addiction and the Effect of Price on Consumption," American Economic Review, American Economic Association, vol. 81(2), pages 237-241, May.
    9. Smith, V. Kerry & Mansfield, Carol, 1998. "Buying Time: Real and Hypothetical Offers," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 209-224, November.
    10. Parsons, George R. & Wilson, Aaron J., 1997. "Incidental And Joint Consumption In Recreation Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-6, April.
    11. Mark D. Agee & Thomas D. Crocker, 1996. "Parental Altruism and Child Lead Exposure: Inferences from the Demand for Chelation Therapy," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 677-691.
    12. Wilman, Elizabeth A., 1980. "The value of time in recreation benefit studies," Journal of Environmental Economics and Management, Elsevier, vol. 7(3), pages 272-286, September.
    13. Amartya Sen, 1997. "Maximization and the Act of Choice," Econometrica, Econometric Society, vol. 65(4), pages 745-780, July.
    14. Bockstael, N E & McConnell, K E, 1993. "Public Goods as Characteristics of Non-market Commodities," Economic Journal, Royal Economic Society, vol. 103(420), pages 1244-1257, September.
    15. Smith, V Kerry & Palmquist, Raymond B, 1994. "Temporal Substitution and the Recreational Value of Coastal Amenities," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 119-126, February.
    16. Katherine A. Kiel, 1995. "Measuring the Impact of the Discovery and Cleaning of Identified Hazardous Waste Sites on House Values," Land Economics, University of Wisconsin Press, vol. 71(4), pages 428-435.
    17. Agee, Mark D. & Crocker, Thomas D., 1994. "Parental and social valuations of child health information," Journal of Public Economics, Elsevier, vol. 55(1), pages 89-105, September.
    18. Smith, V. Kerry & Liu, Jin Long & Palmquist, Raymond B., 1993. "Marine pollution and sport fishing quality : Using Poisson models as household production functions," Economics Letters, Elsevier, vol. 42(1), pages 111-116.
    19. Adamowicz, Wiktor L., 1994. "Habit Formation And Variety Seeking In A Discrete Choice Model Of Recreation Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(1), pages 1-13, July.
    20. Provencher, Bill & Bishop, Richard C., 1997. "An Estimable Dynamic Model of Recreation Behavior with an Application to Great Lakes Angling," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 107-127, June.
    21. 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.
    22. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    23. Boyle Kevin J. & Welsh Michael P. & Bishop Richard C., 1993. "The Role of Question Order and Respondent Experience in Contingent-Valuation Studies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 80-99, July.
    24. K. E. McConnell, 1990. "Double Counting in Hedonic and Travel Cost Models," Land Economics, University of Wisconsin Press, vol. 66(2), pages 121-127.
    25. Bockstael, Nancy E & McConnell, Kenneth E, 1983. "Welfare Measurement in the Household Production Framework," American Economic Review, American Economic Association, vol. 73(4), pages 806-814, September.
    26. 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.
    27. V. Kerry Smith & William H. Desvousges & Matthew P. McGivney, 1983. "The Opportunity Cost of Travel Time in Recreation Demand Models," Land Economics, University of Wisconsin Press, vol. 59(3), pages 259-278.
    28. 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.
    29. Kerry Smith, V. & Desvousges, William H., 1986. "Averting behavior: Does it exist?," Economics Letters, Elsevier, vol. 20(3), pages 291-296.
    30. Unknown, 1986. "Letters," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 1(4), pages 1-9.
    31. Frank J. Cesario, 1976. "Value of Time in Recreation Benefit Studies," Land Economics, University of Wisconsin Press, vol. 52(1), pages 32-41.
    32. Gary H. McClelland & William D. Schulze & Brian Hurd, 1990. "The Effect of Risk Beliefs on Property Values: A Case Study of a Hazardous Waste Site," Risk Analysis, John Wiley & Sons, vol. 10(4), pages 485-497, December.
    33. Nancy E. Bockstael & Ivar E. Strand & W. Michael Hanemann, 1987. "Time and the Recreational Demand Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 293-302.
    34. Michaels, R. Gregory & Smith, V. Kerry, 1990. "Market segmentation and valuing amenities with hedonic models: The case of hazardous waste sites," Journal of Urban Economics, Elsevier, vol. 28(2), pages 223-242, September.
    35. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    36. W. Douglass Shaw, 1992. "Searching for the Opportunity Cost of an Individual's Time," Land Economics, University of Wisconsin Press, vol. 68(1), pages 107-115.
    37. Douglas M. Larson, 1993. "Separability and the Shadow Value of Leisure Time," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 572-577.
    38. Vincent G. Munley & V. Kerry Smith, 1976. "Learning-by-Doing and Experience: The Case of Whitewater Recreation," Land Economics, University of Wisconsin Press, vol. 52(4), pages 545-553.
    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. Larson, Douglas M. & Shaikh, Sabina L., 1999. "An Inverse Demand Approach To Recreation Fishing Site Choice And Implied Marginal Values," 1999 Annual meeting, August 8-11, Nashville, TN 21577, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Vickner, Steven S., 2012. "Measuring the Value of Convenience: A Hedonic Pricing Model Approach in the Market for Breakfast Sausages," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124902, Agricultural and Applied Economics Association.
    3. Stephen Hynes & Nick Hanley & Eoghan Garvey, 2007. "Up the Proverbial Creek without a Paddle: Accounting for Variable Participant Skill Levels in Recreational Demand Modelling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(4), pages 413-426, April.
    4. Kathleen P. Bell & Ivar E. Strand, 2003. "Reconciling Models of Recreational Route and Site Choices," Land Economics, University of Wisconsin Press, vol. 79(3), pages 440-454.
    5. Steven S. Vickner, 2015. "Estimating the Implicit Price of Convenience: A Hedonic Analysis of the US Breakfast Sausage Market," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 281-292, April.
    6. Natalia N. Borisova & Allen C. Goodman, 2003. "Measuring the value of time for methadone maintenance clients: willingness to pay, willingness to accept, and the wage rate," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 323-334, April.
    7. Grinols, Earl L., 1999. "Distance Effects in Consumption: Measuring Distance Value with Application to Casino Siting," The Review of Regional Studies, Southern Regional Science Association, vol. 29(1), pages 63-76, Summer.
    8. Swait, Joffre & Adamowicz, Wiktor & Bueren, Martin van, 2004. "Choice and temporal welfare impacts: incorporating history into discrete choice models," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 94-116, January.

    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 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.
    2. Woodall, Stacie & Wandschneider, Philip R. & Foltz, John C. & Taylor, R. Garth, 2002. "Valuing Idaho Wineries With A Travel Cost Model," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36613, Western Agricultural Economics Association.
    3. Lew, Daniel K. & Larson, Douglas M., 2005. "Accounting for stochastic shadow values of time in discrete-choice recreation demand models," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 341-361, September.
    4. Feather, Peter & Shaw, W. Douglass, 1999. "Estimating the Cost of Leisure Time for Recreation Demand Models," Journal of Environmental Economics and Management, Elsevier, vol. 38(1), pages 49-65, July.
    5. Phaneuf, Daniel James, 1997. "Generalized corner solution models in recreation demand," ISU General Staff Papers 1997010108000013022, Iowa State University, Department of Economics.
    6. Amoako-Tuffour, Joe & Martınez-Espineira, Roberto, 2008. "Leisure and the Opportunity Cost of Travel Time in Recreation Demand Analysis: A Re-Examination," MPRA Paper 8573, University Library of Munich, Germany.
    7. Beal, Diana J., 1995. "A Travel Cost Analysis of the Value of Carnarvon Gorge National Park for Recreational Use," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(02), pages 1-12, August.
    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. Isabel Mendes & Isabel Proença, 2009. "Measuring the Social Recreation Per-Day Net Benefit of Wildlife Amenities of a National Park: A Count-Data Travel Cost Approach," Working Papers Department of Economics 2009/35, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    10. Casey, James F. & Vukina, Tomislav & Danielson, Leon E., 1995. "The Economic Value of Hiking: Further Considerations of Opportunity Cost of Time in Recreational Demand Models," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 658-668, December.
    11. Taylor, R. Garth & Woodall, Stacie & Wandschneider, Philip R. & Foltz, John C., 2004. "The Demand for Wine Tourism in Canyon County, Idaho," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 7(4), pages 1-18.
    12. Pattiz, Brian David, 2009. "Count regression models for recreation demand: an application to Clear Lake," ISU General Staff Papers 200901010800002092, Iowa State University, Department of Economics.
    13. Chin†Huang Huang, 2017. "Estimating the environmental effects and recreational benefits of cultivated flower land for environmental quality improvement in Taiwan," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 29-39, January.
    14. Cooper, Joseph C., 1995. "The Application of Nonmarket Valuation Techniques to Agricultural Issues," Staff Reports 333359, United States Department of Agriculture, Economic Research Service.
    15. W. Shaw & Michael Ozog, 1999. "Modeling Overnight Recreation Trip Choice: Application of a Repeated Nested Multinomial Logit Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(4), pages 397-414, June.
    16. Sandström, Mikael, 1996. "Recreational Benefits from Improved Water Quality: A Random Utility Model of Swedish Seaside Recreation," SSE/EFI Working Paper Series in Economics and Finance 121, Stockholm School of Economics.
    17. Stephen Hynes & Nick Hanley & Eoghan Garvey, 2007. "Up the Proverbial Creek without a Paddle: Accounting for Variable Participant Skill Levels in Recreational Demand Modelling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(4), pages 413-426, April.
    18. Larson, Douglas & Shaikh, Sabina, 1999. "Empirical Specification Requirements for Two-Constraint Models of Recreation Demand," Western Region Archives 321713, Western Region - Western Extension Directors Association (WEDA).
    19. 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.
    20. Mark D. Agee & Thomas D. Crocker, 2002. "On Techniques to Value the Impact of Environmental Hazards on Children's Health," NCEE Working Paper Series 200208, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Sep 2002.

    More about this item

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • H40 - Public Economics - - Publicly Provided Goods - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:rff:dpaper:dp-98-07. 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: Resources for the Future (email available below). General contact details of provider: https://edirc.repec.org/data/rffffus.html .

    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.