Measuring the Location Value of a Recreation Site

By: Taylor, R. Garth; McKean, John R.; Johnson, Donn M.
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Citation

Taylor, R. Garth; McKean, John R.; Johnson, Donn M., Measuring the Location Value of a Recreation Site, Journal of Agricultural and Resource Economics, Volume 35, Issue 1, April 2010, Pages 87-104

The demand for sport fishing on the Snake River reservoirs was estimated using the travel cost method. A short-run demand model was specified with location value for anglers who have the option to access a follow-on site if fishing conditions are poor. Willingness to pay for a fishing trip to the site was $18.52 for anglers who did not have a follow-on site and $43.48 for anglers who did. A location value of $24.96 accrued only to anglers with a follow-on site. Total annual site value was understated by as much as 40% ($0.78 million) if location value for anglers with a follow-on site was excluded from the benefit estimate.