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Revealing Demand for Nature Experience Using Purchase Data of Equipment and Lodging

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Abstract

In 1967, John Krutilla suggested a relationship between car camping, canoe cruising, and cross-country skiing and induced demand for wild, primitive, and wilderness-related opportunities. Here, the time trend of cross-section parameter estimates of the relationship is examined. Households produce nature experiences using two factors: nature attributes and tools. Tools are equipment and lodging. While many studies have investigated to-site costs of producing nature experiences, on-site costs such as equipment and lodging are studied here by using Consumer Expenditure Survey data for Norway. Income coefficients of household demand for nature services in independent cross-section samples for each year are estimated over the period 1986-95. Proportions of households with non-zero purchase expenditures for equipment are followed from 1975 to 1995. Similar proportions of lodging expenditures are studied from 1986 to 1995. Out of a total of 526 goods in an exhaustive system, 20 goods are singled out and classified as nature experience tools. Two additional non-good expenses are added. Coefficients of demand are estimated for each year by using a tobit structure and a maximum likelihood procedure. While income coefficients of equipment and lodging are quite stable, household size coefficients are not. Both equipment and lodging remain luxury items over the period 1986-1995. Proportions of households with positive purchase expenditure on tools increase over time: In a referendum-by-wallets, nature experience production has received more votes and become more popular.

Suggested Citation

  • Erling Røed Larsen, 2001. "Revealing Demand for Nature Experience Using Purchase Data of Equipment and Lodging," Discussion Papers 305, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:305
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    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp305.pdf
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    1. Amemiya, Takeshi, 1973. "Regression Analysis when the Dependent Variable is Truncated Normal," Econometrica, Econometric Society, vol. 41(6), pages 997-1016, November.
    2. Aasness, Jorgen & Rodseth, Asbjorn, 1983. "Engel curves and systems of demand functions," European Economic Review, Elsevier, vol. 20(1-3), pages 95-121, January.
    3. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
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    Cited by:

    1. Tarek Ghalwash, 2008. "Demand for Environmental Quality: An Empirical Analysis of Consumer Behavior in Sweden," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(1), pages 71-87, September.

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    More about this item

    Keywords

    Consumption pattern; environmental valuation; experience production; demand for nature services; willingness-to-pay;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • 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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