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The Role of On-Site Time in Recreational Demand for Wilderness

Published online by Cambridge University Press:  28 April 2015

Ram N. Acharya ,
L. Upton Hatch  and
Howard A. Clonts
Ram N. Acharya
Affiliation:
Morrison School of Agribusiness and Resource Management, Arizona State University East, Mesa, AZ
L. Upton Hatch
Affiliation:
Department of Agricultural Economics and Rural Sociology, Auburn University, Auburn, AL
Howard A. Clonts
Affiliation:
Department of Agricultural Economics and Rural Sociology, Auburn University, Auburn, AL
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Abstract

Treatment of time in travel cost models has been a source of contention among economists. The debate persists because welfare estimates, which are the principal objectives of these studies, are highly sensitive to the treatment of time. The present study examines the dual role of on-site time using evidence from two wilderness areas in Alabama. The empirical results comply with the theoretical expectation that on-site time is both a source of utility and cost. The exclusion of on-site time from demand functions results in biased parameter estimates. In particular, it yields smaller own-price coefficients and higher welfare estimates.

Keywords

full incomeon-site timerecreation demandtravel cost modelC24D60J20Q26
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 35 , Issue 1 , April 2003 , pp. 159 - 169
Copyright
Copyright © Southern Agricultural Economics Association 2003

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