Specification of Driving Costs in Models of Recreation Demand.

Existing recreation demand models have paid much attention to the heterogeneous nature of the opportunity cost of time, but generally stipulate constant per mile costs in access price specifications. This study proposes two alternative approaches to introduce user-specific driving costs into recreat...

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Published in:Land Economics Vol. 81; no. 1; pp. 127 - 144
Main Authors: Hagerty, Danielle, Moeltner, Klaus
Format: Article
Published: University of Wisconsin Press February 2005
Subjects:
Online Access:View this record in EBSCOhost
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        atl: Specification of Driving Costs in Models of Recreation Demand.
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          Hagerty, Danielle
          Moeltner, Klaus
      su:
        Automobile driving
        Economic demand
        Mathematical models
        Travel costs
        Outdoor recreation
        Economics
      sug:
        subj:
          Automobile driving
          Economic demand
          Mathematical models
          Travel costs
          Outdoor recreation
          Economics
      ab: Existing recreation demand models have paid much attention to the heterogeneous nature of the opportunity cost of time, but generally stipulate constant per mile costs in access price specifications. This study proposes two alternative approaches to introduce user-specific driving costs into recreation demand models. The first approach is based on a refined measurement of driving costs based on engineering considerations. The second strategy estimates perceived per mile cost as a function of vehicle attributes in an empirical framework. We find strong evidence that driving costs are a visitor-specific concept, and that prescribed and perceived costs differ substantially. However, welfare measures generated by these alternative specifications are not statistically different from those produced by the standard model in our application of jet skiing in the Lake Tahoe region. (JEL Q26) Reprinted by permission of the publisher.
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    language: English
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