A Discrete-Count Model of Recreational Demand

Abstract

Discrete choice models generate welfare measures resulting from environmental quality changes on a per trip basis instead of over a longer, more policy-relevant time period. Seasonal or annual welfare measures resulting from a quality change are often computed by multiplying each individual′s per trip welfare measure by the number of trips the individual is forecasted to take at the new quality level. These models are typically formulated so that increases in the quality of any site causes every individual to increase his or her participation. This paper presents an alternative method of linking the discrete choice model to a demand model, enabling welfare changes to be estimated in a conventional manner.

Keywords: discrete choice models, environmental quality changes, demand model, welfare change

JEL Classification: q26,c25