The Spatial Limits of the Travel Cost Recreational Demand Model

Abstract

This article describes a method for judging the spatial limits of travel cost recreational demand models as they are conventionally applied to secondary data sets. The spatial limits to the travel cost model result from the assumptions necessary to use the available secondary data to estimate the representative individual's demand for a given recreational site's services. The most important of these assumptions involves: (a) the objective of the trip to the recreational site; (b) the amount of time spent on the site during each trip; and (c) the mode of travel and corresponding travel costs required to reach the site. The test proposed for defining the limits is designed for use in time series applications, but can readily be adapted to conform to the cross-sectional framework of travel cost applications. An example of the test if presented, along with a discussion of the potential impact for consumer surplus estimates of such spatial limitations to the model. The case study is of recent topical interest-the Ventana Wilderness Area in Northern California which was destroyed in the fire fighting effort surrounding the Marble Cone Fire in August 1977. This case study suggests that the definition of spatial limits for the travel cost model can impact, rather substantially, the consumer surplus estimates derived from the model. This finding may be especially important to the current policy making process for allocating recreational resources.

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