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Up the proverbial creek without a paddle: Accounting for variable participant skill levels in recreational demand modelling

Author

Listed:
  • Stephen Hynes

    (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

  • Nick Hanley

    (University of Stirling, Scotland)

  • Eoghan Garvey

    (Department of Economics, National University of Ireland, Galway, Ireland)

Abstract

We adapt the standard random utility model to take account of the heterogeneity of recreational preferences by using what we call a “skilled-based conditional logit framework”. By separating out our sample of whitewater kayakers into two exogenously identifiable groups (based on their skill level) and running separate conditional logits for each group we are able to take account of the fact that kayakers of different skill levels are looking for different characteristics from the whitewater site they choose to visit. We find that not taking into account the differences in the skill of the kayakers and the grade of the river will result in an overestimation of the welfare estimates associated with improvements to lower grade whitewater sites (which are frequented by basic/intermediated proficiency level kayakers) and underestimating welfare estimates associated with changes in the attributes of higher grade whitewater sites (which are frequented by advanced proficiency level kayakers).

Suggested Citation

  • Stephen Hynes & Nick Hanley & Eoghan Garvey, 2006. "Up the proverbial creek without a paddle: Accounting for variable participant skill levels in recreational demand modelling," Working Papers 0604, Rural Economy and Development Programme,Teagasc.
    • Handle: RePEc:tea:wpaper:0604
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Chen, Min & Lupi, Frank, 2013. "Modeling Long Overnight Trips by Chaining Recreation Sites," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150489, Agricultural and Applied Economics Association.
    2. Richard C. Bishop & Kevin J. Boyle, 2019. "Reliability and Validity in Nonmarket Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(2), pages 559-582, February.
    3. Westerberg, Vanja Holmquist & Lifran, Robert & Olsen, Søren Bøye, 2010. "To restore or not? A valuation of social and ecological functions of the Marais des Baux wetland in Southern France," Ecological Economics, Elsevier, vol. 69(12), pages 2383-2393, October.
    4. Morey, Edward & Thiene, Mara, 2012. "A parsimonious, stacked latent-class methodology for predicting behavioral heterogeneity in terms of life-constraint heterogeneity," Ecological Economics, Elsevier, vol. 74(C), pages 130-144.
    5. Hynes, Stephen & O'Reilly, Paul & Corless, Rebecca, 2015. "A comparison of an on-site versus a household survey approach to modelling the demand for recreational angling," Working Papers 262591, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    6. Melstrom, Richard & Lupi, Frank, 2012. "Using a Control Function to Resolve the Travel Cost Endogeneity Problem in Recreation Demand Models," MPRA Paper 48036, University Library of Munich, Germany, revised May 2013.
    7. Hynes, Stephen & O’Reilly, Paul & Corless, Rebecca, 2015. "An on-site versus a household survey approach to modelling the demand for recreational angling: Do welfare estimates differ?," Ecosystem Services, Elsevier, vol. 16(C), pages 136-145.

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    More about this item

    Keywords

    Whitewater kayaking; skill levels; Random Utility Model; preference heterogeneity.;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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