Effects on Welfare Measures of Alternative Means of Accounting for Preference Heterogeneity in Recreational Demand Models

17 Pages Posted: 28 Apr 2020

See all articles by Stephen Hynes

Stephen Hynes

National University of Ireland, Galway (NUIG)

Nick Hanley

University of Stirling

Riccardo Scarpa

University of Waikato - Management School

Date Written: November 2008

Abstract

Multiattribute‐revealed preference data are used to investigate heterogeneity in a sample of kayakers for a panel of whitewater sites in Ireland. This article focuses on a comparison of preference heterogeneity using a random parameter logit model with correlated tastes and a latent class model, in terms of the implications for welfare measures of environmental quality and site‐access changes. Recreationalists' skill levels are found to affect preferences in both approaches. Statistics for the estimated distribution of welfare changes for the average respondent are computed for changes in site attributes, but contrary to previous work, these are found to be of similar magnitude.

Keywords: latent class models, preference heterogeneity, random parameter logit, whitewater kayaking

Suggested Citation

Hynes, Stephen and Hanley, Nick and Scarpa, Riccardo, Effects on Welfare Measures of Alternative Means of Accounting for Preference Heterogeneity in Recreational Demand Models (November 2008). American Journal of Agricultural Economics, Vol. 90, Issue 4, pp. 1011-1027, 2008, Available at SSRN: https://ssrn.com/abstract=3584684 or http://dx.doi.org/10.1111/j.1467-8276.2008.01148.x

Stephen Hynes (Contact Author)

National University of Ireland, Galway (NUIG)

University Road
Galway, Co. Kildare
Ireland

Nick Hanley

University of Stirling

Stirling, Scotland FK9 4LA
United Kingdom

Riccardo Scarpa

University of Waikato - Management School

Hamilton
New Zealand

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