Estimating the Value of Travel Time to Recreational Sites Using Revealed Preferences

36 Pages Posted: 17 Jul 2013 Last revised: 1 Aug 2013

See all articles by Carlo Fezzi

Carlo Fezzi

University of East Anglia (UEA) - School of Environmental Sciences

Ian J. Bateman

University of East Anglia (UEA) - School of Economic and Social Studies

Silvia Ferrini

University of East Anglia (UEA) - School of Environmental Sciences

Date Written: July 16, 2013

Abstract

The opportunity Value of Travel Time (VTT) is one of the most important parts of the total cost of recreation day-trips and arguably the most difficult to estimate. Most studies build upon the theoretical framework proposed by Becker’s (1965) by using a combination of revealed and stated preference data to estimate a value of time which is uniform in all activities and under all circumstances. This restriction is relaxed by DeSerpa’s (1971) model which allows the value of saving time to be activity-specific. We present the first analysis which uses actual driving choices between open access and toll roads to estimate a VTT specific for recreation trips, thereby providing a value which conforms to both Becker’s and DeSerpa’s models. Using these findings we conduct a Monte Carlo simulation to identify generalizable results for use in subsequent valuation studies.

Keywords: Value of Time, Value of Travel Time Savings, Recreation Demand Models, Revealed Preferences, Willingness To Pay Space

JEL Classification: Q50

Suggested Citation

Fezzi, Carlo and Bateman, Ian Julian and Ferrini, Silvia, Estimating the Value of Travel Time to Recreational Sites Using Revealed Preferences (July 16, 2013). FEEM Working Paper No. 64.2013. Available at SSRN: https://ssrn.com/abstract=2294406 or http://dx.doi.org/10.2139/ssrn.2294406

Carlo Fezzi (Contact Author)

University of East Anglia (UEA) - School of Environmental Sciences ( email )

Norwich, Norfolk
United Kingdom

Ian Julian Bateman

University of East Anglia (UEA) - School of Economic and Social Studies ( email )

Norwich, Norfolk NR4 7TJ
United Kingdom

Silvia Ferrini

University of East Anglia (UEA) - School of Environmental Sciences ( email )

Norwich, Norfolk
United Kingdom

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